Happi Staff03.20.20
L Brands is all in on fighting the coronavirus pandemic. The company told the Securities and Exchange Commission that it is suspending part of its e-commerce business to focus on production and distribution of soaps and hand sanitizers amid the ongoing coronavirus pandemic through March 29. Specificially, all e-commerce orders for Victoria's Secret and Pink are stopped. Bath & Body Works e-commerce business will continue to operate, but with a priority on soaps and hand sanitizers.
L Brands is the latest personal care company to join the fight against coronavirus. To find out what other companies in our industry are doing to help, visit Happi's coronavirus microsite.
L Brands also announced it took out a $950 million credit facility from JPMorgan Chase to allow it to continue operations. It announced several days ago it would close all Victoria's Secret, Pink and Bath & Body Works stores in North America until March 29 as a containment measure from coronavirus and send its home office employees to work from home. L Brands is continuing to pay its 80,000 employees during the closure.
While the company has said it saw a sharp increase in demand for soaps and hand sanitizers at the outset of the outbreak, this effectively halts all sales of Victoria's Secret, its largest brand, which accounted for $6.81 billion in sales last year while Bath & Body Works accounted for $5.17 billion. But Bath & Body Works has for years been the faster growing of the two businesses.
The company has withdrawn financial guidance as it, like other retailers, waits to determine how the coronavirus pandemic could impact its bottom line this year.
Earlier this year, L Brands announced that it would be selling a 55% stake in that brand to New York-based private equity firm Sycamore Partners in a deal that values the brand at $1.168 billion. L Brands CEO Les Wexner will step down once that deal closes, which was expected to happen in the second quarter of the year.
L Brands is the latest personal care company to join the fight against coronavirus. To find out what other companies in our industry are doing to help, visit Happi's coronavirus microsite.
L Brands also announced it took out a $950 million credit facility from JPMorgan Chase to allow it to continue operations. It announced several days ago it would close all Victoria's Secret, Pink and Bath & Body Works stores in North America until March 29 as a containment measure from coronavirus and send its home office employees to work from home. L Brands is continuing to pay its 80,000 employees during the closure.
While the company has said it saw a sharp increase in demand for soaps and hand sanitizers at the outset of the outbreak, this effectively halts all sales of Victoria's Secret, its largest brand, which accounted for $6.81 billion in sales last year while Bath & Body Works accounted for $5.17 billion. But Bath & Body Works has for years been the faster growing of the two businesses.
The company has withdrawn financial guidance as it, like other retailers, waits to determine how the coronavirus pandemic could impact its bottom line this year.
Earlier this year, L Brands announced that it would be selling a 55% stake in that brand to New York-based private equity firm Sycamore Partners in a deal that values the brand at $1.168 billion. L Brands CEO Les Wexner will step down once that deal closes, which was expected to happen in the second quarter of the year.
