Fashion retailer L Brands Inc (NYSE: LB) is one step closer to selling its Victoria's Secret business to Sycamore Partners and a deal with the private equity firm could be announced this week, CNBC said in a Sunday report.
L Brands CEO Under Fire
Sources told CNBC negotiations between L Brands and Sycamore remain ongoing, and it is not yet known what role L Brands CEO Les Wexner would play in a deal — if any.
Wexner has been criticized over the past few months given the poor performance of the iconic fashion brand. The CEO has also come under pressure stemming from his relationship with the late sex criminal Jeffrey Epstein, according to CNBC.
Beyond Wexner, several other high-ranking executives have come under fire, including former chief marketing officer Ed Razek, who was accused of inappropriate behavior.
Sycamore could be working under the assumption it can improve the Victoria's Secret brand, which still generated close to $7.5 billion in sales last year.
Link: Victoria's Secret Execution 'Terrible'
Stephanie Link, a former researcher with Nuveen and now a CNBC contributor, said on "Squawk Box" Monday morning the execution at Victoria's Secret has been "terrible."
Investors have an opportunity to benefit from the stock's decline from $100 in 2015 to around $25 today, she said.
"It has lost a major amount of value because it has been mismanaged."
Link said she bought shares of L Brands within the past few weeks under the assumption that it will execute better or activist investor Barington Capital could use its influence "to stir up the pot."
A sale of Victoria's Secret would leave L Brands with its "gem" store in Bath & Body Works, Link said.
L Brands Trades Higher
CNBC's sources said any ongoing negotiations could result in a delayed or failed deal. Both sides declined to respond to CNBC's request for comments.
L Brands shares were trading 2.14% higher at $24.10 at the time of publication Monday.
Photo by Samantha Marx via Wikimedia.