Sycamore Partners wants to terminate its deal to acquire a controlling stake in lingerie brand Victoria’s Secret from L Brands Inc., according to a court filing Wednesday.
Shares of L Brands fell as much as 26% in New York trading to as low as $8.92 apiece. Sycamore Partners agreed in February to buy 55% of the lingerie chain and take it private, leaving L Brands with a minority stake.
The private equity firm said in the Delaware Chancery Court complaint that L Brands has breached covenants under the agreement. It claimed that the Covid-19 outbreak, which has forced the retailer to shutter stores, “provides no relief” under the deal terms. . . . more