COLUMBUS, Ohio (WCMH)- Victoria’s Secret is being sold to private equity firm Sycamore Brands, this after falling sales and a tarnished image for the brand.
L Brands also announced Les Wexner will step down as chairman and CEO but retain a seat on the company’s board.
Wexner said in a statement on Thursday, “We believe the separation of Victoria’s Secret Lingerie, Victoria’s Secret Beauty and PINK into a privately held company provides the best path to restoring these businesses to their historic levels of profitability and growth.”
Some analyst have reported that the #MeToo movement was responsible for the companies decline in sales.
The Ohio Women’s Alliance said in a statement reacting to the sale, “Women are the most powerful consumers in the U.S. economy, and as a result, brands that continue to perpetuate sexism, lack body inclusivity and fail to repair harm have fallen behind. Today we hold space for the people who have been impacted by the culture at Victoria’s Secret.”
Another reason for the brand’s fall could be competition rising through the ranks. Kelley Griesmer with The Women’s Fund of Central Ohio wants people to be cautious when giving all responsibility to #MeToo.
“There’s a lot of great entrepreneurs in the past five, tens years that have been changing the model of retail regardless of the Me Too movement. They just knew the customers were different and looking for something different,” said Griesmer, President, CEO The Women’s Fund of Central Ohio.