Early reports from the Wall Street Journal have Leslie Wexner, the billionaire founder of L Brands (NYSE:LB), the parent company of Victoria’s Secret, in talks to step down as CEO
The Journal story said, citing people close to the matter says Wexner is currently exploring strategic alternatives for the Victoria’s Secret brand.
The company is aiming to reach a decision on the potential sale and decide succession plans in coming weeks.
Media reports last fall said the company was exploring a spinoff of the Victoria’s Secret brand or a "private investment in public equity" to help pay down the company’s debt. At the time, it was it was exploring such deals with a structure that would keep Wexner in place.
Wexner’s extensive history with accused sex trafficker Jeffrey Epstein made some investors wary of such a deal.
The fallout from Wexner’s relationship with Epstein has continued to haunt the company. Wexner gave Epstein power of attorney and Epstein was even a trustee of the Wexner Foundation.
L Brands hired outside counsel to examine the relationship between the two men in July. In a letter to the foundation in August, Wexner said Epstein had misappropriated more than $46 million from Wexner and his family years ago, but did not provide documents to federal prosecutors about the missing money until last August.
Epstein was in a New York jail, awaiting trial on further charges, when his body was found in his cell in August. Police have treated the death as a suicide.
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