‘Pure Gamesmanship’: Victoria’s Secret Owner Hits Back At Sycamore Partners After Bungled Takeover

Sycamore Partners on Wednesday said the terms of its deal with L Brands had been breached after the coronavirus pandemic, a “material adverse effect”, led to furloughs and the closure of 1,600 Victoria’s Secret and PINK stores around the world—without their permission.

But L Brands maintains that it was transparent with Sycamore on the ways it is working to shield the lingerie business against the impact of the pandemic and accused the firm of “pure gamesmanship”.

As the spat deepens, L Brands filed the claim in a Delaware court on Thursday, claiming that Sycamore’s attempt to end the deal was not valid because the world was aware of the coronavirus crisis when the deal was struck in February.

It added that the “material adverse effect” clause made a specific provision for the impact of the pandemic.

Sycamore Partners’ bid to end its deal to buy 55% of Victoria’s Secret for $525 million has turned into one of the biggest examples of a buyer blaming the pandemic for wanting to pull out of a deal, the New York Times reports.

L Brands added that Sycamore had tried to renegotiate the price of its stake on April 13, before sending the termination notice.