Limited Brands finally shed its namesake apparel chain on Monday, but they didn't exactly sell it.After many months on the block with no takers, 75% of the 251 unit chain's stock will be shifted to Boca Raton, Florida based private equity firm Sun Capital Partners who will invest $50 million in the company and open a $75 million line of credit. Limited Brands for their part will take a $42 million after-tax loss, which didn't exactly send their stock flying through the roof.
From what we can figure here at The Shophound, this means that The Limited was such a drag on the company's balance sheet that they were willing to take a loss shedding it in hopes that the new owner can turn it around and raise the value of the 25% it has held on to, showing just how far the once dominant chain had fallen.
Having sold 75% Express outright as well, This leaves Limited Brands with two major chains, Victoria's Secret and Bath & Body Works to pin it's future on.
This, of course, would be an excellent time for Limited Brands to change its name.
Perhaps they would like to give Henri Bendel away as well, possibly to someone who someone who could take better care of that once illustrious store.
Any takers?
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