March 17, 2020 / 12:08 PM / 24 days ago

L Brands temporarily closes stores, draws down $950 million from existing credit line

FILE PHOTO: A customer passes by an L Brands Inc., Victoria's Secret retail store in Manhattan, New York, U.S., May 13, 2016. REUTERS/Brendan McDermid

(Reuters) - L Brands Inc (LB.N) said on Tuesday it would temporarily close all its stores, including those of Bath & Body Works and Victoria’s Secret, in the United States and Canada through March 29 and that it has drawn down $950 million from an existing credit line due to the coronavirus outbreak.

The company also withdrew its first-quarter earnings forecast, joining an array of U.S. companies.

L Brands said it had $2 billion in cash following the drawdown, which the company called a “proactive measure.” It added all its employees would continue to receive pay and benefits during the temporary closure period.

Reporting by Praveen Paramasivam in Bengaluru; Editing by Shailesh Kuber

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