The Limited Will Close All 250 Stores In The United States.

Rosebud

The retailer The Limited Stores LLC (hereinafter referred to as The Limited) announced in the official website that it will close all the 250 stores in the United States.

Meanwhile, its owner private equity fund Sun Capital Partners has said that investment in The Limited has continued to increase.

In a letter to investors, Sun Capital Partners said that the company's $50 million acquisition of The Limited has gained 1.8 times its return from the previous dividend and profit distribution, while the remaining value of The Limited has been written down to zero on the book.

The news revealed how private-equity funds profiting from a dying company with a stake in equity: collecting dividends from companies, and funding sources are often raised by borrowing.

Sun Capital said in a statement: "over the past 9 years, we have invested heavily in The Limited to improve our company's operations and create a sustainable business."

The Limited said it would close all physical retail outlets by Sunday.

Sun Capital said: "because of the growing market environment for retail and women's clothing business challenges, The Limited had to close the store, this decision is also very frustrating for us."

Sun Capital acquired most of the stake in The Limited in 2007 and acquired the remaining shares in 2010.

Erik Gordon, a professor at the Ross School of business at University of Michigan, says the return on investment Sun Capital has gained is a "happy ending" for a private equity fund.

But the investment period that lasted for 9 years is still too long.

At present, the consumption patterns and preferences of young people have changed significantly, and the number of shopping centers has decreased. The physical retail industry has been greatly impacted by electricity providers and fast fashion. It has not been spared from the retail chains like The Limited and Messi to large department stores such as the department store.

Last year, including teenagers

Retailers Aeropostale Inc and Pacific Sunwear of California Inc (PacSun) have filed for bankruptcy. The bankruptcy auction of American Teenager fashion retailer American Apparel will soon be seen.

According to the world clothing and shoe net, as the The Limited closes its stores, more than 4000 employees, including 800 full-time employees, will be laid off.

Sun Capital said The Limited is evaluating the strategic options for e-commerce and intellectual property rights.

The Limited was founded in 1963 by Leslie Wexner (that is, Victoria s Secret parent L Brands board chairman and CEO). The name is "Limited" because it is different from large integrated stores, mainly selling women's clothing.

Since then, The Limited has expanded rapidly, playing an important role in shopping malls and department stores.

In the 80s of last century, The Limited successively bought Victoria and s Secret, Roy Raymond, Lane Bryant, Henri Bendel, Henri, Victoria & amp; t (1996 exit) and other brands and retailers.

In 1980, The Limited founded fashion retailer Express; in 1982, it bought Victoria 's Secret for $1 billion.

In 90s, The Limited launched Limited Too, Bath & Body Works, Structure and Victoria, s Secret, and so on.

And business branches.

In 2007, Limited Brands group sold The Limited to private equity Sun Capital, but retained Bath Body Works and Victoria s s.

At the beginning of last year, Leslie Wexner came out again as CEO of Victoria 's Secret.

More interesting reports, please pay attention to the world clothing shoes and hats net.