Limited to Sell its Lerner New York/New York & Co. Business

Limited Brands Inc. will sell its Lerner New York/New York Co Company business to the unit’s president and CEO Richard P. Crystal and Bear Stearns Merchant Banking. Limited Brands will receive $78.5 million at the close, as well as a $75 million subordinated note and warrants for 15% of the new company.

Lerner New York/New York & Co. offers lower-cost apparel through its 522 stores. Limited Brands is a holding company for a variety of cataloger/retailers, including Victoria’s Secret, Bath & Body Works, Express, Express Men’s (Structure), White barn Candle Co., Limited Stores and Henri Bendel. The company is based in Columbus, OH.