COVID-19 Affects Transaction Agreement for L Brands, Inc.

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Jessica McKeon, Audit Analytics

On April 22, 2020, L Brands, Inc. announced that private equity firm Sycamore Partners delivered a notice purporting to terminate the transaction agreement related to the sale of a 55% interest in Victoria’s Secret Lingerie, Victoria’s Secret Beauty and PINK brands that was announced in February 2020. According to Sycamore Partners, L Brands violated the transaction when it closed stores, furloughed employees, and skipped rent payments due to the COVID-19 pandemic.

Here, Audit Analytics examines the effects of COVID-19 on L Brands’ retail and financial operations. These events make it increasingly evident that the ripple effects of COVID-19 are only beginning to show.

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