Barrington urges Victoria’s Secret to rebuild the committee and drops the poison

Activist Investor Barrington Capital Group seeks Victoria’s Secret Restructure the board and scrapping recently adopted shareholder rights plans.

James Mitrotonda, CEO of the New York-based hedge fund, owns more than 1% of the company’s unpaid common stock, told Victoria’s Secret Chair Donna James in a letter writing that she had not been able to recognize the possibility since its separation from its parent company, L-brand in 2021, and that the current board of directors “overseeing $240 million in destruction.”

Mitarotonda argued that the company’s current leadership, including CEO Hillary Super, lacked the experience and strategic clarity needed to lead a successful turnaround. Barrington has limited experience in the supermarkets with limited CEO and public company experience, and has only a short term in intimate apparel.

Macy’s wants to leave Bloomingdale, Blu Marcury in place

Mitrotonda also highlighted concerns that the supermarket has not gained employee trust, saying it is a sign of a “lack of strategic focus” while failing to prioritize pink core business and international growth.

Victoria’s Secret shares rose Monday morning after the letter was posted on the investor’s website.

Victoria’s Secret will close several in-store service websites after “security incidents”

Six of the current nine boards are sitting on the board during the company’s decline, with the remaining two independent directors “limited success experience.” Scaling the global consumer businessaccording to Barrington.

“We believe that Victoria’s secret requires a restructured board of directors with proven experience in brand revitalizing, operating execution, international expansion and shareholder value creation. Results of value creation. ”

Meanwhile, activist investors who also own stocks at Macy’s have said they are also disappointed by the company’s recently adopted “poison” plan, calling it counterproductive.

“Equally troubling, there is a risk for management and boards when meaningful changes are justified,” the letter continued. “Academic research and real-world experience show that firms with weak governance structures and strong clauses tend to trade with low ratings.”

To “restore and make the brand successful,” he said investors should focus on core product categories such as BRA, reinvestment in digital and international markets, and its operating model.

Click here to get your Fox business on the go

Ticker	safety	last	change	change %
VSCO	Victoria’s Secret & Co.	18.74	+0.55	+3.02%

Barrington said he previously worked with the L Brand to help implement important initiatives. During his tenure as an advisor to the board, the company’s share price rose 221.5%.