, continuing efforts to focus on its beauty and intimate-apparel brands, agreed to sell a majority stake in its Limited women's clothing chain.
The Columbus, Ohio-based retail conglomerate said Monday that it will transfer a 75% stake in Limited Stores to Sun Capital partners in exchange for a $50 million investment in the business and a $75 million credit line. Limited Brands will receive no cash proceeds and expects to record a loss of $42 million on the transaction.
The move follows the company's sale of a majority stake in Express, a mall-based trendy clothing chain, to Golden Gate Capital for $602 million. Limited said Monday that it is now selling 75% of Express, up from its prior agreement of 67%. The company expects to receive cash proceeds of $425 million from that deal, and will record an after-tax gain of $188 million.
Limited is seeking to put most of its focus on two big chains: Victoria's Secret and Bath & Body Works. Those two chains have been the company's main driver of growth in recent years as sales at the clothing stores have faltered.
Limited Stores had 2006 sales of $493 million, while Express had sales of $1.7 billion. Limited Brands' total sales for the year were $4.02 billion.