US fashion retailer L Brands has signed a deal with British clothing retailer Next Plc under which the latter will form a joint venture with its Victoria’s Secret business in the UK and Ireland (Victoria’s Secret UK).

As per the terms of the deal, which is subject to regulatory approval, the joint venture will acquire the majority of the assets of the Victoria’s Secret UK business that is presently in Administration. The deal is expected to secure the future of over 500 employees of the business in the UK, said Rob Harding, Administrator at Deloitte.

The newly created joint venture will operate all Victoria’s Secret stores in the UK and Ireland, which will be subject to agreeing to terms with landlords.

The UK digital business, which is presently operated by Victoria’s Secret in the US, will be combined into the joint venture in Spring 2021.

Martin Waters – CEO of L Brands International said: “We are pleased to take this next step in our profit improvement plan for Victoria’s Secret.  Next’s capabilities and experience in the U.K. market are substantial, and our partnership will provide meaningful growth opportunities for the business.”

As per the agreement terms, Next will own 51% of the joint venture, while Victoria’s Secret will own the remaining 49%.

Simon Wolfson – Chief Executive of Next said: “Next is very pleased at the prospect of working in partnership to expand the Victoria’s Secret brand in the U.K. and Ireland both in stores and online.”

In May 2020, L Brands and private equity firm Sycamore Partners agreed to mutually scrap their previously announced $525m deal regarding the sale of a 55% stake in Victoria’s Secret Lingerie to the latter.

  L Brands, Martin Waters, Simon Wolfson, United Kingdom, Victoria’s Secret