Victoria’s Secret Sale in Jeopardy

L Brands’ deal to sell a 55% stake in Victoria’s Secret to private equity Sycamore Partners could be in jeopardy. In it’s annual report, filed with the Securities and Exchange commission on Monday, the company said there was a risk the deal might not close. “Assuming the VS Transaction is completed, there can be no assurance that we will be able to realize the anticipated value and benefits therefrom, and the VS transaction may adversely affect our business,” the company wrote. “The proposed transaction will result in a smaller, less diversified and more narrowly focused business than before the VS Transaction, which makes us more vulnerable to changing market and economic conditions.”

In an attempt to save money, as of April 5, L Brands is furloughing all in-store associates and anyone not needed for the support of the online beusiness until furter notice. “As circumstances change, we will make every effort to bring these associates back to work as soon as possible,” the company wrote in a statement Friday. “Furloughed associates will also be able to apply for unemployment benefits, if eligible.”