COLUMBUS, United States — L Brands on Thursday said it would to sell its luxury lingerie brand La Senza to an affiliate of private equity firm Regent LP, capping a months long effort to sell the loss-making business.

The company has been facing stiff competition from American Eagle Outfitter's Aerie and upstarts such as Adore Me and Third Love, forcing it to sell its non-core assets and focus on brands such as Victoria's Secret and Bath & Body Works.

As part of the deal, Regent would assume La Senza's liabilities and would have to pay L Brands if it sells or monetises any part of the lingerie brand.

L Brands bought Canadian chain La Senza for about $700 million in early 2007 and expects it to incur an operating loss of $40 million in the year.

The company, which had said it was exploring options for La Senza business in October, expects to complete the transaction in January.

Shares of the company, which had fallen 48 percent this year, were rose 1 percent to $31.8 in early trading.

By Soundarya; editor: Arun Koyyur.