COLUMBUS, Ohio (WTVN)--L Brands has confirmed that the company will sell a controlling stake of Victoria's Secret to a venture capital firm, and company Founder and CEO Les Wexner will step down.
A 55% majority interest in the lingerie brand will be sold to Sycamore Partners, with the company valued at $1.1-billion.
The sale to Sycamore Partners will total approximately $525-million, and L Brands will maintain a 45% stake.
Upon the transaction closing, Wexner will step down as Chairman and CEO of L Brands, and will be further known as Chairman Emeritus of the company.
Victoria's Secret had been marred by declining sales in recent years, as well as other bad publicity. That included the cancellation of the annual Victoria's Secret Fashion Show, and a report in the New York Times about a culture of misogyny, bullying, and harassment of Victoria's Secret models by a former L Brands executive.
Once the sale goes through, Bath & Body Works, a successful division of L Brands, will become a standalone public company.