Next has completed on a JV arrangement with L Brands, the owner of Victoria’s Secret, in which it will acquire most of the assets of the lingerie brand’s UK business.
As the 51 per cent stakeholder going forward, Next will now take over and operate all 25 of Victoria’s Secret stores in the UK and Ireland. It will immediately commence negotiations with store landlords in order to ensure that the stores will be viable going forward. Not all of the 800 employees who had been furloughed by L Brands can be retained, but 500 employees will be transferred across as part of the deal.
The UK online business which has hitherto been operated by Victoria’s Secret from the US will form part of the JV from Spring 2021.
L Brands International CEO Martin Waters said: “We are pleased to take this next step in our profit improvement plan for Victoria’s Secret. Next’s capabilities and experience in the UK are substantial and our partnership will provide meaningful growth opportunities for the business.”
Next CEO Lord Simon Wolfson said that Next was very pleased at the prospect of working in partnership to expand Victoria’s Secret.
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