Lingerie leader with stores in Boise, Meridian announces it’s closing 248 locations
Days after J.C. Penney declared bankruptcy and Pier 1 Imports called it quits, another major U.S. retailer says it will close stores across three brands.
L Brands announced Thursday that it will shutter nearly 25% of its 1,091 Victoria’s Secret stores: 235 in the U.S. and 13 in Canada. It will also close 50 of its 1,737 Bath & Body Works stores in the United States and one in Canada, as well as three Pink stores.
“What we are intensely focused on right now is strengthening the foundation of that business and addressing the foundation of that business to manage through this crisis,” Stuart Burgdoerfer, Victoria’s Secret’s interim CEO, said during an earnings call. “We’re closing approximately 250 stores in North America. That’s a very significant decision that we think will strengthen the business.”
Victoria’s Secret operates four stores in Idaho: at the Boise Towne Square mall, at The Village at Meridian, and in Twin Falls and Idaho Falls. Bath & Body Works has nine stores in Idaho, including the Boise mall, and in Meridian and Nampa. Pink does not operate any stores in Idaho.
None of the Idaho stores have reopened after closing March 17 because of the coronavirus pandemic. Nearly two dozen Bath & Body Works stores have reopened across the country. L Brands plans to reopen most of its stores in June and July, L Brands CEO Andrew Meslow said on the earnings call.
The company did not identify which stores are slated for closing.
L Brands on Wednesday reported its third straight quarterly loss and fourth straight drop in sales. The losses came as its stores were closed during much of the quarter because of the pandemic. Online sales increased 85% as customers loaded up on hand sanitizer and scented soaps.
Net sales for the quarter plummeted 37%, from $2.6 million a year ago to $1.7 million. While same-store sales at Victoria’s Secret were down 13%, there was a bright spot. Sales at Bath & Body Works jumped 41%.
L Brands also said it plans to split Victoria’s Secret and Bath & Body Works into standalone companies. It announced in late February that buyout firm Sycamore Partners would spend $525 million to buy a controlling interest in Victoria’s Secret. The agreement was signed Feb. 20, a day after stock market indexes hit a record high.
The deal dissolved amid the pandemic and was called off early this month.
L Brands said it’s in discussions with landlords over the stores it plans to close.
The closures add to a growing inventory of empty retail space. Hundreds of Sears stores closed in the past several years, including the anchor store at Boise Towne Square, which closed last year. J.C. Penney said it plans to close 242 stores by the end of next year. Pier 1 announced Wednesday that it will close all 540 of its stores, including ones outside the Boise mall and at The Village at Meridian.
This story was originally published May 21, 2020 at 12:38 PM.
