Victoria’s Secrets face a fresh activist fight from Barrington’s capital
Abigail Summerville and Anuja Bharat Mistry
NEW YORK (Reuters) – Activist investor Barrington Capital Group is trying to change the committee on Victoria’s secrets and end the recently adopted “poison” plan, according to a letter to shareholders of the lingerie maker.
The New York-based hedge fund, which owns more than 1% of the company, said Victoria’s secret has lost shareholder value of more than $2.4 billion since its spinoff from the former parent company L brand in 2021.
On Sunday, Reuters reported citing sources that it hopes Barrington will replace most or all of its board with the company and end the “poison” plan it adopted in May to protect against hostile takeovers.
“Barrington is not keen to engage with us, but we look forward to discussing their views,” said a secret spokesman for Victoria.
“We are confident that implementing strategies under a new, experienced leadership team will continue to unlock shareholder value,” the spokesman added.
With demand waning this year, stocks that have lost more than half their value so far have risen about 3% in morning trade.
Victoria’s secret requires a restructured board of directors with “proven experience in brand revitalizing, operating execution, international expansion and shareholder value creation.”
Investment companies said retailers should focus on core categories and initiatives such as Bras and Angels campaigns to accelerate digital and international market growth.
Barrington highlighted concerns about the company’s leadership, saying that CEO Hillary Super, who took over in September 2024, has limited experience with the public company and that other boards do not have the experience needed to revitalize the iconic brand.
Victoria’s Secret, now with a market capitalization of around $1.45 billion, adopted a poison scheme to dodge Brett Brandy’s investment company, increasing its interest in the company to about 13%.
Barrington’s pressure puts Victoria’s secret in a “unstable position.” As they try to dodge other activist investors and restore confidence in CEOs’ turnaround plans, emmarketer analyst Rachel Wolf added that growing dissatisfaction with investor leadership could force change at the company’s management level.
Barrington previously wanted a change in the L brand, divided into Victoria’s Secret and Bath & Bodyworks.