15th Sep 2020 09:09
(Alliance News) -Â Next PLC is forming a joint venture to operate the UK arm of Victoria's Secret, L Brands Inc said on Monday.
L Brands is an Ohio, US-headquartered retail firm which owns lingerie business Victoria's Secret and Bath & Body Works, which sells items such a shower gels, lotions and body fragrance.
Victoria's Secret UK and London-listed clothing retailer Next have formed a joint venture which will buy the majority of the assets of the Victoria's Secret UK business. The UK arm of the global Victoria's Secret group fell into administration in June.
The newly formed partnership will operate all Victoria's Secret stores in the UK and Ireland.
The UK digital business, which is currently operated by Victoria's Secret in the US, will be folded into the joint venture in spring 2021. Under the terms of the agreement, Next will own 51% of the venture, while Victoria's Secret will own 49%.
Simon Wolfson, Next chief executive, said: "Next is very pleased at the prospect of working in partnership to expand the Victoria's Secret brand in the UK and Ireland both in stores and online."
Rob Harding, administrator at Deloitte, said the agreement is "an ideal way to secure the future of more than 500 employees in the UK."
Next shares were up 1.2% in London at 6,068.00 pence on Tuesday morning. Shares in L Brands closed up 3.6% in New York on Monday, and trading 0.7% higher after-hours.
By Lucy Heming;Â [email protected]
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