L Brands has decided to spin off Victoria’s Secret rather than sell it, the New York Times reported. The company said last year that it was considering separating Victoria’s Secret from the rest of its business, to test private equity’s interest. Ultimately, sources say, L Brands has decided to split itself into two independent, publicly listed companies: Victoria’s Secret and Bath & Body Works. The deal is expected to close in August. Bids didn’t match what Victoria’s Secret expects to get in a spinoff. L Brands received several bids north of $3 billion, but it turned them down because it expects to be valued somewhere between $5 billion and $7 billion in a spinoff to L Brands shareholders. Analysts at Citi and JPMorgan recently valued Victoria’s Secret as a stand-alone company at $5 billion.
