MANUFACTURING
L Brands Sells La Senza to Beverly Hills Private Equity Firm Regent LP
The parent company of Victoria’s Secret, Bath and Body Works and Henri Bendel has sold its La Senza lingerie-store chain.
L Brands Inc., founded in 1963 by Leslie H. Wexner, announced a transfer of ownership and operating control of La Senza to Beverly Hills, Calif.–based global private-equity firm Regent LP for an undisclosed price. According to the deal, L Brands sold 100 percent of its La Senza assets to Regent with Regent agreeing to assume the lingerie brand’s operating liabilities.
La Senza’s sale comes in the wake of a September announcement by L Brands that in January 2019 it would close its Henri Bendel stores and the brand’s e-commerce site following the 2018 holiday season. The company has also struggled to remain competitive with its Victoria’s Secret brand as increased competition continues to grow from lingerie brands using more-relatable marketing tactics to lure consumers.
Despite the deal, which was announced on Dec. 13, L Brands’ agreement with Regent might not be a complete end to the Columbus, Ohio–based company’s relationship with La Senza. L Brands may receive money from the deal if Regent sells La Senza or finds other ways to monetize the brand. Financial estimates for 2018 showed La Senza had an operating loss of $40 million on $250 million in revenue. Transfer of La Senza ownership from L Brands to Regent should be completed by early January.
After making its first acquisition in 2013, Regent’s investments have grown to include consumer products as well as retail and e-commerce ventures to its portfolio.
In addition to La Senza, Regent’s brands include Lillian Vernon, the personalized-gift seller acquired from Taylor Corp. in October 2015. Other ventures include Sassoon and a media portfolio of newspapers, magazines and television platforms, including Sunset magazine, which it acquired from Time Inc. in December 2017.
