• July 10, 2007

Soon, it will be nothing but undies, body lotion and scented candles for Limited Brands. The company, which has been trying to shed its clothing stores, announced that it has agreed to transfer a 75% ownership interest in its Limited Stores business to Sun Capital Partners, a private investment firm.

Limited brands will "receive no cash proceeds and expects to record an after-tax loss of approximately $42 million on the transaction," the company said. Sun will contribute $50 million of equity capital into the business and arrange for a $75 million credit facility. The company also said it finalized the sale of a 75% ownership interest in its Express brand to affiliates of Golden Gate Capital for after-tax proceeds of $425 million.

Both chains are expected to remain based in Columbus, and retain the brand names.

"We have moved from a portfolio of brands and businesses to an enterprise powered by two world-leading brands: Victoria's Secret and Bath and Body Works...the best brands in intimate apparel and personal care," the company said in its announcement. "These strategic actions will enable the 'new' Limited Brands to derive the benefit of our increased focus."

--Sarah Mahoney