L Brands, the owner of Victoria's Secret, is reportedly on the hunt for a new buyer after a deal with a private-equity firm fell through last year, and is seeking more than double what it wanted before.
Sources familiar with the matter told Bloomberg wanted a deal that would value the brand at between $2 billion and $3 billion. Previously, Sycamore Partners had agreed to buy a 55% stake in the company for $525 million.
The private-equity firm pulled out in May 2020 after filing a lawsuit claiming Victoria's Secret's decision to close stores during the pandemic, cut back on new inventory, and not pay rent for April violated the two companies' agreement. L Brands later said the decision to split was mutual.
A spokesperson for L Brands did not immediately respond to Insider's request for comment on Friday morning. L Brands CFO Stuart Burgdoerfer confirmed to Bloomberg that the company wanted a considerably higher valuation this time round, after recouping lost sales at the back end of 2020.
"As a result of the substantial improvement in performance at Victoria's Secret, various sell-side analysts have valued the business at as much as $5 billion," Burgdoerfer told Bloomberg.
After several years of sliding sales, the Victoria's Secret brand has made a comeback in recent quarters after reshuffling management and changing its brand image and marketing, which was accused of being outdated. In a recent note to clients, a group of Jefferies analysts described the brand's progress as "admirable," after it reported strong fourth-quarter results.
In March this year, former longtime L Brands CEO Les Wexner stepped down from the board after pressure from investors.