Dentons advises Victoria’s Secret on one of the largest franchise joint ventures in Asia

Dentons has advised Victoria’s Secret & Co (NYSE: VSCO), the world’s largest intimates specialty retailer and owner of Victoria’s Secret and Pink stores, on a joint venture with Regina Miracle International (Holdings) Limited, a Hong Kong stock exchange listed lingerie manufacturer (HKG: 2199). Valued at US$100 million, this project is one of the largest franchise driven joint-ventures in the Asia Pacific market.

The joint venture will operate all Victoria’s Secret stores and the related online business in China. According to the agreement, which is subject to regulatory clearance, Victoria’s Secret & Co will own 51 percent of the JV with Regina Miracle retaining the remaining 49 percent.

“This project is an important step in Victoria’s Secret’s global growth strategy and will allow the iconic retailer to expand its presence throughout China,” said lead partner Babette Marzheuser-Wood, Global Head of Franchise Group. “With our unique franchise law and consulting capabilities, and our deep experience in the retail and luxury sector, Dentons is among the very few law firms positioned to assist clients on franchising projects of this scale.”

Composed of 20 lawyers from across six jurisdictions, including the US, China, Hong Kong, the Cayman Islands, the British Virgin Islands, and Germany, the Dentons team advised the client on franchising, corporate structuring, tax aspects, as well as intellectual property matters.

Partner Babette Marzheuser-Wood led Dentons’ cross-border team on the deal in collaboration with partners Clemens Maschke (Frankfurt) and Christiane Zedelius (Munich) from the Luxury, Fashion and Beauty sector group, who provided insights on the retail industry. Other team leaders included senior consultant Julianne Doe in Hong Kong, partner Emilia Shi in China, and partner Matthew Clark in the US.