Leslie H. Wexner is anticipated to stage down as the main executive of L Manufacturers, the retail empire he built with his purchase of Victoria’s Solution in 1982, and the lingerie brand name designs to go non-public in a sale to Sycamore Partners that could be introduced as early as Thursday, according to a few men and women with knowledge of the offer.
[Update: L Brands announced the sale of a majority stake in Victoria’s Secret on Thursday.]
Mr. Wexner, 82, is the longest-serving main government in the S&P 500. He turned Victoria’s Mystery into the world’s most recognizable lingerie brand right before experiencing critical queries about his leadership centered on the company’s inside tradition and his relationship with the disgraced financier Jeffrey Epstein.
The publicity-shy Mr. Wexner has appear below intense scrutiny in the past calendar year for his deep ties to Mr. Epstein and the flailing effectiveness of Victoria’s Magic formula. L Models, previously acknowledged as Limited Models, owns Victoria’s Mystery and Tub & Overall body Works.
Sycamore will invest in 55 percent of Victoria’s Solution, which was valued at $1.1 billion, in accordance to 1 of the folks with information of the deal who spoke on problem of anonymity because it experienced not been announced. Mr. Wexner will continue to be on the L Models board and retain stakes in both of those Victoria’s Mystery and Bath & Body Is effective, the person reported. Bathtub & Entire body Will work will keep on being community.
Information of the predicted sale was 1st documented by The Wall Road Journal.
Mr. Wexner’s business enterprise savvy and sharp eye for the tastes of American customers made him a billionaire and a retail market icon. About the several years, he has been described as “one of the terrific service provider princes of the late 20th century,” a “rag-trade revolutionary” and the “Merlin of the shopping mall.”
But the executive’s legacy has been tainted by his connection to Mr. Epstein, who died in a Manhattan jail mobile in August whilst experiencing federal sexual intercourse-trafficking rates. Mr. Wexner has sought to distance himself from the financier and emphasised that he experienced no expertise of Mr. Epstein’s suspected actions.
Mr. Wexner utilized Mr. Epstein as a own adviser for decades, handing him sweeping powers about his funds, philanthropy and non-public lifestyle. Mr. Epstein was empowered to borrow income on behalf of Mr. Wexner and signal Mr. Wexner’s tax returns, as properly as hire individuals and make acquisitions. More than the yrs, Mr. Epstein attained a mansion in Manhattan, a luxury estate in Ohio and a personal plane — possessions really worth around $100 million today — that experienced beforehand been owned by Mr. Wexner or his corporations.
Information of the marriage included to the worries of L Manufacturers, wherever Victoria’s Secret has been struggling to preserve up with switching notions of woman magnificence and representation in promotion. Victoria’s Top secret is the company’s crown jewel. It is the world’s dominant specialty retailer for lingerie, with billions of dollars in income each individual calendar year, and a pop-tradition phenomenon. The supermodels chosen to signify the brand name — recognized as “Angels” — had extended served shape the beliefs of attractiveness and sexiness for quite a few Individuals.
But it canceled its renowned yearly style present very last calendar year after a virtually two-decade operate on broadcast television and conducted layoffs. The largely male administration of L Makes has come below fierce criticism, specifically as Victoria’s Magic formula has struggled.
The New York Instances claimed this month that Victoria’s Secret has for several years had an entrenched culture of misogyny, bullying and harassment, primarily based on interviews with a lot more than 30 present-day and former executives, workers, contractors and products, as well as court docket filings and other files. The tradition was presided around by Mr. Wexner and Edward Razek, the main advertising officer of L Brand names who was the matter of numerous complaints that went unheeded. (Mr. Razek reported the allegations from him ended up “categorically untrue.”)
In reaction to queries from The Periods, Tammy Roberts Myers, a spokeswoman for L Manufacturers, furnished a statement at the time on behalf of the board’s independent directors. She claimed the corporation “is intensely focused” on company governance, workplace and compliance practices and that it experienced “made important strides.”
“We regret any occasion where by we did not attain this aim and are completely fully commited to continual improvement and finish accountability,” she claimed.