Next has reportedly sealed a deal to snap up a majority stake in Victoria’s Secret’s struggling UK business.
Next will acquire a 51% stake in the lingerie brand, with current owner L Brands retaining the remaining 49%.
Under the terms of the deal, first reported by The Wall Street Journal, Next will operate all of Victoria’s Secret’s stores in the UK and Ireland.
Victoria’s Secret’s online business will be integrated into the joint venture early next year.
Marks & Spencer had also run the rule over Victoria’s Secret as part of its ongoing transformation plan, but Next has muscled its way to the front of the queue.
An official statement announcing the acquisition is now expected within weeks.
Details of the rescue deal have emerged three months after Victoria’s Secret’s UK arm filed for bankruptcy protection.
The business launched in Britain back in 2012, but the UK market represents a small slice of its overall revenues, the majority of which come from the US.
But Victoria’s Secret has struggled to fend off online rivals, sparking a slump in sales and profitability. The retailer has closed a number of stores and axed jobs this year as it seeks to shore up its balance sheet.
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