Collapse of Victoria’s Secret deal reveals weakness in M&A contracts
Researchers warn that the impact of Covid-19 on a deal involving lingerie retailer Victoria’s Secret reveals issues in traditional contract design.
Image: Photo Stella/Shutterstock
Victoria’s Secret, purveyor of luxury lingerie, made headlines this year when its sale to a private equity buyer was left indiscreetly crumpled on the floor because of the pandemic. Academics now argue there are important legal lessons to be learned for M&A transactions regarding the impact of Covid-19 on the deal. In short, they argue standard M&A contracts are falling short.
In February this year L Brands, Victoria’s Secret parent company, signed a deal to sell 55% of the business to private equity outfit Sycamore for a hefty $500m. But, as Nicola Malta and Matteo Winkler point out in journal The Law of International Trade, b
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