(Reuters) - L Brands on Thursday said it would to sell its luxury lingerie brand La Senza to an affiliate of private equity firm Regent LP, capping a months long effort to sell the loss-making business.
The company has been facing stiff competition from American Eagle Outfitter's Aerie and upstarts such as Adore Me and Third Love, forcing it to sell its non-core assets and focus on brands such as Victoria's Secret and Bath & Body Works.
As part of the deal, Regent would assume La Senza's liabilities and would have to pay L Brands if it sells or monetizes any part of the lingerie brand.
L Brands bought Canadian chain La Senza for about $700 million in early 2007 and expects it to incur an operating loss of $40 million in the year.
The company, which had said it was exploring options for La Senza business in October, expects to complete the transaction in January.
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Shares of the company, which had fallen 48 percent this year, were rose 1 percent to $31.8 in early trading.
(Reporting by Soundarya J in Bengaluru; Editing by Arun Koyyur)
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