Victoria’s Secret Sells Stake In China Business For $45M

Victoria’s Secret is selling a 49% stake in the company’s China business to Hong Kong’s lingerie company, Regina Miracle International, for $45 million in cash.

The deal is aimed at helping the company boost its sales in the Chinese market with the help of a local partner. It will result in the formation of a joint venture, which will see Regina Miracle operating all the company’s stores and online business in China, according to Reuters.

The agreement between the two companies is expected to close in Q1 2022, a year after Victoria’s Secret became an independent and publicly traded company, following its separation from Bath & Body Works.

In the U.S. market, the company is seeking to revive its business by rethinking its creative direction and shuffling its executive team. In December 2020, Victoria’s Secret hired Condé Nast’s Creative Director Raúl Martinez to lead its creative efforts. Meanwhile, Martin Waters was promoted to CEO after John Mehas stepped down.

With its global market share declining, the company has been forced to shutter hundreds of its store locations over the course of the pandemic, including its Hong Kong flagship store, as it has looked to improve liquidity and reduce operational costs. The company has also sold majority stake of Victoria’s Secret U.K. business to Next Plc and has cut over $400 million in expenses by reducing corporate staff.

Originally published at https://retailbum.com on January 26, 2022.