NEW YORK -- Victoria's Secret won't be bought after all.
L Brands, which owns the lingerie seller, said Monday that it has agreed to end a February deal that would have sold a controlling stake of Victoria's Secret to private equity firm Sycamore Partners.
Last month, Sycamore Partners sued to get out of the $525 million deal, citing the coronavirus pandemic, which forced the chain to close its stores and lose sales. On Monday, L Brands said the lawsuit with Sycamore Partners was settled.
L Brands, which is based in Columbus, Ohio, said it now plans to spin off Victoria's Secret into a separate company and focus on running its Bath & Body Works chain.
Shares of L Brands Inc. tumbled 14% in after-hours trading Monday.
