Sycamore seeks to terminate acquisition of Victoria's Secret

L Brands, Inc. has announced that it has received a notice from Sycamore Partners intending to terminate the sale deal of a 55 percent interest in Victoria’s Secret Lingerie, Victoria’s Secret Beauty and Pink.

Sycamore Partners informed L brands about its decision to pull out of the deal on Wednesday and also filed a lawsuit in the Court of Chancery of the State of Delaware on April 22, 2020 seeking a declaratory judgment that its termination of the Transaction Agreement is valid.

L Brands says, “purported termination is invalid”

L Brands said in a statement: “Sycamore Partners’ purported termination of the Transaction Agreement is invalid. L Brands will vigorously defend the lawsuit and pursue all legal remedies to enforce its contractual rights, including the right of specific performance.”

According to the Wall Street Journal, Sycamore Partners finds L Brands temporarily closing its retail stores in March, including Victoria’s Secret and Bath and Body Works, because of the coronavirus pandemic, were in violation of the transaction.

In February this year, L Brands announced that Victoria’s Secret, with a total enterprise value of 1.1 billion dollars, will be separated from L Brands into a privately-held company majority-owned by Sycamore with Sycamore acquiring 55 percent interest for approximately 525 million dollars and L Brands retaining a 45 percent stake.

Picture:L Brands media gallery