Celebrity Charity: Victoria’s Secret’s parent company falls after its CEO’s ties with embattled financier resurface – AOL

0
96
Celebrity Charity: Victoria’s Secret’s parent company falls after its CEO’s ties with embattled financier resurface – AOL

Celebrity Charity:

  • L Brands CEO Les Wexner has ties to Jeffrey Epstein, the financier charged with sex trafficking.
  • While Wexner cut ties with Epstein years ago and has not been accused of any wrongdoing, L Brands shares declined on news of the charge.
  • Victoria’s Secret has struggled to stay relevant to consumers in the #MeToo era. 
  • Watch L Brands trade live on Markets Insider.

Shares of L Brands slid as much as 5% on Tuesday as reports of ties between its CEO and Jeffrey Epstein — the financier charged with sex trafficking — came to light. 

Epstein was the money manager for L Brands CEO Les Wexner for years, and even bought his Manhattan mansion, Bloomberg reported on Monday. Court documents unsealed the same day revealed that federal prosecutors have charged Epstein with running a sex-trafficking operation. Wexner has not been accused of any wrongdoing.

Neither Wexner nor L Brands have spoken out about his prior connections with Epstein, with whom he has not been connected for more than a decade. Still, the ties between Epstein and Wexner are proving to be a drag on L Brands as it tries to reinvent its image to appeal to socially conscious consumers.   

RELATED: Take a look at every retailer that filed for bankruptcy in 2018:

17 PHOTOS

Every retailer who filed for bankruptcy in 2018

See Gallery

Celebrity Charity: A’gaci

Women’s apparel and accessories retailer A’Gaci filed for Chapter 11 bankruptcy in January. 

Photo credit: Getty

Celebrity Charity: Kiko USA

Cosmetics retailer Kiko USA Inc filed for Chapter 11 bankruptcy protection in January.

Photo credit: Getty

Celebrity Charity: Tops Markets

Tops Markets operates 174 supermarkets — called Tops Friendly Markets. The company filed for bankruptcy protection in February.

Photo credit: Getty

Celebrity Charity: The Bon-Ton Stores

The Bon-Ton Stores owns multiple department store chains including Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s, and Younkers. The company filed for bankruptcy in February.

Photo credit: Getty

Celebrity Charity: Remington Outdoor

Remington filed for Chapter 11 bankruptcy protection in March.

Photo credit: Getty

Celebrity Charity: The Walking Company

The shoe seller The Walking Company, which operates 208 stores in the US, filed for Chapter 11 bankruptcy protection in March.

Photo credit: Getty

Celebrity Charity: Claire’s

The jewelry chain Claire’s filed for bankruptcy in March.

Photo credit: Getty

Celebrity Charity: Southeastern Grocers

Southeastern Grocers, the parent company of the grocery chains Winn-Dixie, Harveys and Bi-Lo, filed for Chapter 11 bankruptcy protection in March.

Photo credit: AOL

Celebrity Charity: Nine West

Nine West Holdings filed for bankruptcy in April.

Photo credit: Getty

Celebrity Charity: Bertucci’s

Italian casual-dining chain Bertucci’s filed for Chapter 11 bankruptcy protection in April.

Photo credit: AOL

Celebrity Charity: Rockport

The footwear brand filed for Chapter 11 bankruptcy protection in May.

Photo credit: Getty

Celebrity Charity: National Stores

The owner of the Fallas chain of discount stores filed for bankruptcy in August.

Photo credit: Facebook

Celebrity Charity: Brookstone

Brookstone filed for Chapter 11 bankruptcy protection in August.

Photo credit: Getty

Celebrity Charity: Samuels Jewelers

Samuels Jewelers filed for Chapter 11 with an agreement for bankruptcy financing in August.

Photo credit: Facebook

Celebrity Charity: Toys R Us

Toys R Us filed for bankruptcy in September.

Photo credit: Getty

Celebrity Charity: Mattress Firm

Mattress Firm filed for bankruptcy in October.

Photo credit: PA

Celebrity Charity: Sears

Sears filed for bankruptcy in October.

Photo credit: PA

HIDE CAPTION

SHOW CAPTION

L Brands is the parent company of Bath & Body Works and Pink, as well as Victoria’s Secret. The conglomerate has struggled to maintain the popularity of its Victoria’s Secret brand, which used to be the most famous lingerie retailer in the US. Sales have plummeted as customers have grown disenchanted with the brand. Analysts have also grown skeptical of the company’s future in the #MeToo era. 

It’s taken its toll on the company. The lingerie company lost 9% of its market share in the US between 2015 and 2018. This year, Victoria’s Secret has had said it will close 53 stores in North America, up from 30 store closings last year.

Pink, the brand focused on a younger demographic, has also struggled to keep its sales numbers afloat. Other brands such as American Eagle’s Aerie have boosted their market share by being more inclusive and advocating for body-positivity. ThirdLove, another brand, has also become increasingly critical of Victoria’s Secret. 

Shares of L Brands are up roughly 4% year-to-date.

More from Business Insider:


Furious Home Depot shoppers say they’re boycotting the store and cutting up their cards after one of the home-improvement retailer’s founders said he’d donate some of his fortune to Trump’s re-election campaign


Deutsche Bank is kicking off a brutal cull of 18,000 jobs as part of a $8.3 billion overhaul


Apple trolled Google again by erecting a giant billboard next to its controversial data-hungry smart neighborhood