L Brands Board Opens Probe of Jeffrey Epstein's Role at Company
July 24 2019 - 06:38PM
Dow Jones News
By Khadeeja Safdar
L Brands Inc. said its board of directors has hired an outside
law firm to conduct a review of financier Jeffrey Epstein's role at
the retail company.
Mr. Epstein served for about two decades as the personal money
manager for longtime CEO Leslie Wexner. Former executives said he
also inserted himself into the business, buying a plane from the
company for $10 million and trying to offer input on which women
should be Victoria's Secret models.
Mr. Epstein was indicted in New York on federal sex-trafficking
charges stemming from an alleged scheme to exploit underage girls.
Mr. Epstein has pleaded not guilty. Mr. Wexner said he wasn't aware
of the alleged criminal behavior and cut ties with Mr. Epstein
nearly 12 years ago.
Although Mr. Epstein was Mr. Wexner's personal money manager,
"we do not believe he was ever employed by nor served as an
authorized representative of the company," an L Brands spokeswoman
said. "Mr. Epstein's crimes are abhorrent, and we applaud every
effort to bring justice to those harmed."
L Brands recently revamped its board after an activist hedge
fund, Barington Capital Group LP, said earlier this year it lacked
the independence and skill needed to navigate drastic changes in
the lingerie market. The company added two new directors and signed
an agreement with Barington to have the fund serve as special
adviser.
Mr. Wexner has been CEO and chairman of L Brands since he
started the business in 1963. Mr. Epstein's two-decade relationship
with Mr. Wexner, which extended into the 81-year-old's retail
companies, charities and personal life, became crucial to Mr.
Epstein's eventual wealth and prominence, the Journal has
reported.
Write to Khadeeja Safdar at khadeeja.safdar@wsj.com
(END) Dow Jones Newswires
July 24, 2019 18:23 ET (22:23 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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