L Brands has seen been seeing a decline in profit since 2016, with its 2019 sales reporting net losses of $366 million. Zara closed 1,200 stores. That will be helpful, said Beanstalk’s Stone, as the company looks to repair an image besmirched as recently as this month, when models and executives said they were bullied and harassed for decades. A group of investors criticized Sycamore in 2018, saying it left apparel company Nine West Holdings Inc. insolvent after buying its parent. By 2017, the investment netted a more than sixfold return on capital for Sycamore and its backers. Les came under fire in 2019 because of his personal ties to Jeffery Epstein , who was arrested and charged with sex trafficking before dying in jail in August. Kaluzny quickly refocused the company on its core demographic -- older, well-to-do women who favor traditional basics like blazers, ballet flats and pearls. Coronavirus store closings:Pier 1 Imports to shutter all stores nationwide in bankruptcy, Contributing: Jim Weiker, The Columbus Dispatch, Follow USA TODAY reporter Kelly Tyko on Twitter: @KellyTyko. Even the most seasoned buyout experts were stunned at the deal’s speed and the amount Sycamore was paying itself. Necessary cookies are absolutely essential for the website to function properly. According to Deloitte, the company had become a victim of the lockdown rules, which saw consumers spending less on nonessential items like fashion and luxury. With Victoria’s Secret, Kaluzny apparently got a good deal. Still, recent returns show how daunting retail has become. “If you’re not relevant, it doesn’t matter what money you put into it.”. The longtime CEO of Victoria's Secret's parent company, Les Wexner, is expected to step down from his role and is in talks to sell Victoria's Secret. Faced with financial problems, it announced in May the closure of 250 stores in North America, and warned that others may follow in the next two years. The company has seven southwestern Pennsylvania stores: Like us on Facebook to see similar stories, States finalize their vaccine distribution plans, More Than 70% of Shoppers Have This Food Fear About Coronavirus. Photographer: Slaven Vlasic/Getty Images North America, “Before all the brouhaha and all the social issues, there was a fundamental issue of the brand and the brand relevance in the U.S.,” said Wendy Liebmann, CEO of consulting firm WSL Strategic Retail. This isn’t Sycamore’s first flier on physical stores in the age of online shopping. The world’s luxury industry has crumpled. L Brands, the parent company of Victoria’s Secret and Bath & Body Works, said Tuesday it will slash 15% of its corporate workforce, making it another major retailer still reeling from the financial fallout from the coronavirus. “On May 4, 2020… Before it's here, it's on the Bloomberg Terminal. I’ve previously reported for USA Today, Business Insider, The San Francisco Business Times and San. Interim Victoria’s Secret CEO Stuart Burgdoerfer said in a call with analysts Thursday to discuss L Brands quarterly earnings that the store closures were an appropriate decision and could strengthen the business. As part of that profit-improvement plan, we are addressing the operating losses in our 25 U.K. stores,” he said. By clicking “Accept”, you consent to the use of ALL the cookies. NEWS. The lingerie brand has collapsed into administration, with accountancy firm Deloitte being appointed to renegotiate lease terms as well as sell the loss-making division in order to save the business owner L Brands LB. “We are taking a number of actions across Victoria’s Secret and Victoria’s Secret PINK to strengthen and position the business to succeed as a separate stand-alone company. The company’s core image was called into question as brands that prioritize size inclusivity have become more popular. We also use third-party cookies that help us analyze and understand how you use this website. You also have the option to opt-out of these cookies. The pandemic has already precipitated the bankruptcy of the British clothing and home goods chain Laura Ashley or of the department store chain Debenhams. Echoing concerns expressed in the brand’s US home market, Sofie Willmott, lead retail analyst at GlobalData, said Victoria’s Secret has lost its appeal to … However, COVID-19, Harding said, accelerated the fall of the UK arm. It is mandatory to procure user consent prior to running these cookies on your website. Pier 1 Imports announced plans to shutter all its remaining stores, J.C. Penney unveiled it will close 242 stores, Macy's plans to reopen 80 more stores for Memorial Day weekend after temporary COVID-19 closings, J.C. Penney says it plans to close nearly 29% of stores – or 242 locations – as part of its bankruptcy, 55% of Victoria’s Secret to Sycamore Partners, Pier 1 Imports to shutter all stores nationwide in bankruptcy, Your California Privacy Rights/Privacy Policy. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. This bankruptcy does not concern online activities in the United Kingdom since they are not owned by the British branch itself. The lingerie brand has collapsed into administration, with accountancy firm Deloitte being appointed to renegotiate lease terms as well as sell the loss-making division in order to save the business owner L Brands LB.