In February, it was reported that Sycamore Partners, a private investment firm, was going to purchase 55% of Victoria’s Secret from L Brands for $525 million — and L Brands said it would  focus on growing Bath & Body Works.

Now, Sycamore is trying to back out of the deal — saying that L Brands violated the transaction when it closed its stores due to the coronavirus pandemic and skipped paying rent in April. L Brands has filed a lawsuit against the firm for trying to back out of the deal. 

CNBC reports that Sycamore may be covered, due to the wording of the deal. The article states: “The terms of the transaction allowed for the possibility of a pandemic triggering a ‘material adverse effect’ clause, which are typically included in deals to allow a buyer an opportunity to renegotiate should extraordinary events impact business.”

L Brands says it will continue to work on closing the sale, and that the company will “vigorously defend the lawsuit and pursue all legal remedies to enforce its contractual rights, including the right of specific performance.”

Photo: Instagram/Victoria’sSecret