Victoria’s Secret parent company L Brands Inc. (NYSE:LB) has indicated that it will close permanently around 250 stores in Canada and the US this year.
Victoria’s Secret to close 235 stores in the US
L Brands has not given details on the outlets they will close, but currently, there are around 1,091 stores across the US with 144 Pink stores and 909 Victoria’s Secret. There are42 Victoria’s Secret locations in New Jersey. The company will close 3 Pink stores and 235 Victoria’s Secret locations in the US as well as 13 stores of its 38 locations in Canada.
Equally, the company has also announced that around 51 Bath & Body Works locations in North America will be closed by the end of the year. In New Jersey, there are 10 Bath & Body Works locations and around 1,635 locations nationwide.
The company’s chief communications officer Tammy Roberts indicated that they will not release the list of the locations they will shutter. The company has indicated that it is evaluating all stores closely more so those that are vulnerable will be at risk of being shut. This is according to the L Brands’ quarterly earnings release.
L Brands reported a 37% decline in sales
In the quarter, which ended in May 2, 20020, the company reported that its total sales had declined by 37%. All of the retail chain’s stores closed on March 17 because of the coronavirus outbreak. Last year a dozen of Victoria’s Secret stores were closed across the US, but none was affected in New Jersey.
Victoria’s Secret interim CEO Stuart Burgdoefer stated in an earnings call discussing quarterly earnings of L Brands that the closer of the stores was the ideal decision that could help the company’s business. He added that the closures are expected in the coming months, and more will likely follow. Burgdoerfer indicated that the company expects more closures beyond the current stated 250 that the company is targeting this year.
In February, a Sycamore Partners, a private company reportedly bought Victoria’s Secret for around $525 million.