L Brands Board Opens Probe of Jeffrey Epstein's Role at Company

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 [e-mail]

(END) Dow Jones Newswires

July 24, 2019 18:23 ET (22:23 GMT)

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