L Brands suspends Victoria's Secret e-commerce orders
L Brands announced that it will suspend all new e-commerce orders for Victoria’s Secret and Pink, as it closes its distribution centers, through March 29.
Still, the company’s Bath & Body Works e-commerce business will continue to operate, as business is fulfilled by a third-party.
L Brands said it would focus on soaps and hand sanitizers as these are “critically important products for everyone right now.”
For over a week, the Covid-19 outbreak has been effecting the retail industry with hundreds of store closures announced across North America, and now possibly e-commerce as well.
The Columbus, Ohio-based company closed all of its Bath & Body Works, Victoria’s Secret and Pink stores in the U.S. and Canada on Tuesday and will not reopen until Monday, March 30.
L Brands sold a controlling stake in its Victoria's Secret unit to investment firm Sycamore Partners earlier this year, which should help alleviate losses from the lingerie market amid the Covid-19 crisis.
The private equity firm owns 55 percent of Victoria's Secret, while L Brands kept a 45 percent stake.
In response to the financial uncertainty generated by the Covid-19 pandemic, the company has withdrawn the earnings guidance it issued for the first quarter of 2020 on February 26.
It also decided to draw down $950 million from its secured revolving credit facility “in an abundance of caution and as a proactive measure.”
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