COLUMBUS, Ohio — L Brands Inc. announced Tuesday it plans to separate Bath & Body Works and Victoria’s Secret into two independent companies.
In a release, The Board of Directors said that the decision would provide shareholders with more value than a sale.
“In the last ten months, we have made significant progress in the turnaround of the Victoria’s Secret business, implementing merchandise and marketing initiatives to drive top line growth, as well as executing on a series of cost reduction actions, which together have dramatically increased profitability,”, Chair of the Board Sarah Nash said in a statement.
The Board said the separation will allow business to achieve its best opportunities for growth.
According to L Brands, the retail company has been evaluating the possibility of a spin-off or sale of Victoria’s Secret in the past.
The transaction is expected to completed in August 2021.
Lex Wexner stepped down as Chief Executive Officer and Chairman of the Board in 2020.