Sycamore Moves To Terminate VS, Pink Deal

Sycamore Partners sent a notice today to L Brands stating it was terminating its agreement to acquire a 55% interest in Victoria’s Secret.

The investment bank 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,” according to L Brands.

The $525 million deal, which was announced February 20th, covered a majority stake in both the lingerie and beauty segments of Victoria’s Secret, as well as Pink.

L Brands stated that “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. L Brands intends to continue working towards closing the transactions contemplated by the Transaction Agreement.” — NM