The US lingerie retailer Victoria’s Secret & Co. is planning to hand over its retail activities in China to a specially established joint venture with the Chinese textile manufacturer Regina Miracle International (Holdings) Limited. The company, which has been listed as an independent company on the stock exchange since last year, announced a corresponding partnership agreement on Tuesday. Accordingly, Victoria’s Secret will hold 51 percent of the shares in the new joint venture, with Regina Miracle taking over the remaining 49 percent.
The US company will also receive 45 million US dollars (40 million euros) as compensation for investments already made by its Chinese partner. The transaction still requires the approval of the relevant competition authorities and is expected to be completed in the first quarter of 2022, according to Victoria’s Secret. The new joint venture will then operate “all Victoria’s Secret stores and the associated online business in China”.
Martin Waters, the CEO of the lingerie provider, referred to the long-standing cooperation with Regina Miracle: The company has been a valued supplier to Victoria’s Secret for “more than twenty years,” he said in a statement. The aim of the joint venture now presented is to “further expand business in China through joint investments in product development, sales and marketing,” says Waters. The establishment of the China joint venture concludes Victoria’s Secret’s “repositioning of international business that has been ongoing for several years” and provides “a platform for accelerated sales and profit growth in this market in the years to come.”
The approach is nothing new for the label: In 2020, the then parent company L Brands Inc. brought the retail business of Victoria’s Secret in Great Britain and Ireland into a joint venture with the retail group Next Plc.
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