Victoria’s Secret sues Sycamore Partners over deal termination

24 Apr 2020 , 6:29pm

In one of the early pandemic lawsuits, the lingerie retailer is going into battle with a private equity firm over an agreement to invest in the company. 

Victoria's Secrets has filed a complaint in a Delaware Court alleging that Sycamore Partners is trying to get out of its deal to buy a majority stake in the brand for $525 million. The move follows Sycamore's lawsuit over Victoria's Secret steps to close stores and furlough staff in response to the pandemic. The private equity company accused the lingerie company of going against the terms of the deal, which it denied. 

In response, Victoria's Secret parent company L Brands claims Sycamore is trying to get out of the deal or negotiate better terms. Commenting on its temporary steps to cut back as a result of Covid-19, L Brands, which would have a 45 per cent minority shareholding in Victoria’s Secret if the transaction went ahead, said it had every incentive to preserve the value of the business.