Events & AwardsDec 20, 2024
Two Participants Complete Inaugural Ella Klein InternshipJamie Dunton and Gabriella Botelho are the first graduates of the program, created by the WJA Foundation and Julius Klein Diamonds.
MajorsFeb 21, 2020
Longtime Retail CEO Les Wexner to Step Down
Les Wexner, CEO of L Brands, will depart once the company closes a deal to sell its Victoria’s Secret brand.
A Victoria’s Secret store in New York City. L Brands, the lingerie brand’s parent company, has sold a controlling stake in the retailer to private equity firm Sycamore Partners. (Image courtesy of Wikimedia Commons/WestportWiki)
Columbus, Ohio—Fashion retailer L Brands Inc. announced Thursday that founder and longtime CEO Les Wexner will step down as it sells a controlling stake in Victoria’s Secret.
One of the company’s flagship brands, the lingerie and beauty retailer is being sold to private equity firm Sycamore Partners in a deal valued at $525 million, a move that will take the now-publicly traded company private.
Sycamore will hold a 55 percent majority interest in Victoria’s Secret’s lingerie and beauty brands and its teen-focused Pink line with L Brands retaining the remaining 45 percent.
The deal puts the retailer’s valuation at $1.1 billion.
L Brands will shift its focus to its Bath & Body Works brand, which it said represented the “vast majority” of its 2019 consolidated operating income.
The Victoria’s Secret brand has struggled in recent years as online lingerie brands like AdoreMe and ThirdLove gained popularity with more inclusive marketing and extended size ranges.
Ed Razek, the brand’s former chief marketing officer, came under fire following a 2018 interview with Vogue in which he said that “no one had any interest” in plus-size models and that the brand’s annual fashion show would not include transgender models because “the show is a fantasy.”
He issued a public apology for his “insensitive comments” and stepped down the following year.
Its televised fashion show, which began in 2001, was cancelled last year as the number of viewers dwindled.
According to the L Brands announcement, Wexner will step down when the deal is completed but remain on the board as chairman emeritus.
Wexner was the longest-tenured CEO of the S&P 500 companies, having served as head of L Brands for 57 years, as per a Business Insider report. That title will soon be held by Warren Buffet, who has led Berkshire Hathaway for 50 years.
Wexner’s departure comes at a time of financial turmoil for Victoria’s Secret.
The brand has faced public scrutiny for its failure to evolve with changing tastes in product and marketing, which was reflected in a rough holiday season.
Sales at its physical stores were down 8 percent year-over-year compared with flat sales in the previous holiday season. Same-store sales for both the in-store and online channels slipped 1 percent compared with a 4 percent increase a year ago.
Compounding Victoria Secret’s struggling performance was Wexner’s connection to a high-profile scandal.
Wexner joins a number of notable figures, including Britain’s Prince Andrew, who have stepped down from public
roles in the wake of their connection to late financier Jeffrey Epstein, a convicted sex offender.
Epstein was a trustee of the Wexner Foundation with power-of-attorney privileges. In a letter to the foundation last year, Wexner revealed that Epstein misappropriated more than $46 million in funds.
Stepping into Wexner’s role will be Andrew Meslow, chief operating officer of Bath & Body Works. He will take the reins and join L Brand’s board when the transaction closes.
In the meantime, Meslow has been promoted to CEO of Bath & Body Works.
Current Bath & Body Works CEO Nick Coe has been named vice chairman of brand strategy and new ventures at the bath products retailer.
The company will also make changes to its board, replacing three directors, including the lead independent director.
The deal will give L Brands a chance to reduce its debt using the funds as well as its $500 million in excess balance sheet cash.
Epstein was a trustee of the Wexner Foundation with power-of-attorney privileges. In a letter to the foundation last year, Wexner revealed that Epstein misappropriated more than $46 million in funds.
Stepping into Wexner’s role will be Andrew Meslow, chief operating officer of Bath & Body Works. He will take the reins and join L Brand’s board when the transaction closes.
In the meantime, Meslow has been promoted to CEO of Bath & Body Works.
Current Bath & Body Works CEO Nick Coe has been named vice chairman of brand strategy and new ventures at the bath products retailer.
The company will also make changes to its board, replacing three directors, including the lead independent director.
The deal will give L Brands a chance to reduce its debt using the funds as well as its $500 million in excess balance sheet cash.
More on Majors
The Latest
CollectionsDec 20, 2024
Piece of the Week: Retrouvaí’s Ring for CharityIn the spirit of giving, Retrouvaí will donate $4,000 from the sale of this ring to the Los Angeles Regional Food Bank.
IndependentsDec 19, 2024
Michigan’s DeVries Jewelers Unveils New Location in Time for the HolidaysCo-owner Dan DeVries shared what it’s like moving into a space triple the size of its old store and how it feels to be a “real jeweler” now.
Brought to you by
A Diamond Is Forever Celebrates "Forever Present" Holiday CampaignA Diamond is Forever hosted a holiday celebration in honor of their new marketing campaign, ‘Forever Present.’
CollectionsDec 19, 2024
State Property Transforms Spain’s Generalife Gardens into JewelryAlong with the latest “Gardens” collection, the brand has released limited-edition designs offering more indulgent pieces.
Weekly QuizDec 19, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CrimeDec 19, 2024
Alleged Jewelry Thieves Attempt Rowboat EscapeThe man and woman are accused of stealing jewelry from a shipping container then trying to flee by paddling a small boat out into a bay.
SourcingDec 19, 2024
The Second-Largest Diamond Ever Found Now Has a Name The 2,488-carat diamond recovered from a mine in Botswana has been dubbed “Motswedi” while its 1,094-carat sibling is “Seriti.”
Brought to you by
De Beers Group Launches Holiday Campaign for Natural Diamonds‘Forever Present’ campaign revives the iconic A Diamond is Forever tagline and celebrates the diamond dream.
SourcingDec 19, 2024
Gemfields Reports Record Ruby Auction Results Despite Challenges at SourceThe average price per carat hit a record high for the miner, which said it remains unaffected by the conflict in Mozambique.
AuctionsDec 18, 2024
Alexandrite Ring Sells for Record-Setting $1.9M at Sotheby’sThe nearly 17-carat stone made history for the color-change gem that, according to the auction house, is experiencing a “notable surge” in the market.
WatchesDec 18, 2024
Historic Titanic Pocket Watch Winds Its Way Back to Tiffany & Co. More than a century after survivors gifted a Tiffany timepiece to the captain of the ship that rescued them, the jeweler has reclaimed it.
TechnologyDec 18, 2024
Picchiotti Utilizes AI in ‘Spotlight’ Video CampaignThe videos highlight how pieces from the “Xpandable” and “Reversible Xpandable” collections put the wearer in the spotlight.
IndependentsDec 18, 2024
Industry Veteran Steve Feldman Set to RetireFeldman reflected on 45 years in the jewelry industry and clarified that it’s not a total retirement.
Events & AwardsDec 17, 2024
Chanel to Receive Gem Award for High Jewelry ExcellenceThe luxury brand is being honored for excellence in high jewelry design in its “Haute Joaillerie Sport” collection.
SourcingDec 17, 2024
Frank Circelli, Founder of Gem Shopping Network, Dies at 75Circelli was a pioneer in the world of TV shopping who is remembered for his passion for gemstones and his big personality.
AuctionsDec 17, 2024
Blue Diamond Fetches $8.8M at Christie’sThe nearly 6-carat stone headlined the recent jewelry auction, which also featured Mica Ertegun’s jewelry.
CrimeDec 17, 2024
‘Black Bin Crew’ Robbers Get 14-16 Years in Prison The three men, who got their nickname because they’d toss the jewelry they stole into black plastic bins, were arrested back in August.
TrendsDec 16, 2024
Marion Fasel’s New Book Delves Into the History of Engagement Rings“The History of Diamond Engagement Rings: A True Romance” is a 128-page small-format book containing more than 165 images.
WatchesDec 16, 2024
Take a Look Inside the New Rolex Boutique on Rodeo DriveGearys opened a 6,200-square-foot Rolex store with a design that pays homage to the brand’s connection to the ocean.
GradingDec 16, 2024
GCAL By Sarine Expands 8X to 2 More Fancy Shapes The diamond cut grade is now available for marquise- and pear-shaped diamonds.
SourcingDec 16, 2024
Diamonds Do Good Announces 2025 Award RecipientsDDG said the honorees’ business practices embody a commitment to positive social impact, industry innovation, and community empowerment.
TrendsDec 13, 2024
Selena Gomez Said ‘Forever Begins Now’ to Marquise Diamond Engagement RingEstimates on the size and value of the solitaire diamond, which is mounted on a diamond pavé-set yellow gold band, vary.
TrendsDec 13, 2024
Piece of the Week: Martin Katz’s Tanzanite Drops These half-moon tanzanite earrings totaling 25 carats are part of a special trunk show taking place this weekend in Dallas.
Recorded WebinarsDec 13, 2024
Watch: The Highs and Lows of 2024The National Jeweler editors recap the top news, the best jewels, and their favorite stories of the year.
AuctionsDec 12, 2024
Tom Brady’s Watches Top $4M at Sotheby’s AuctionThe highest-grossing lot of the sale was the retired QB’s Rolex Paul Newman Daytona “John Player Special.”
SourcingDec 12, 2024
Grizzly Emerald Auction Garners $22.4MRecent expansion initiatives at the Zambian emerald mine have shown strong production numbers, said Grizzly founder Abdoulaye Ndiaye.
SourcingDec 12, 2024
De Beers Announces 2024 ‘Shining Light’ Award WinnersThe competition awarded 12 designers, each from a country where De Beers recovers diamonds, with business support and tuition assistance.
