THE WHAT? Victoria’s Secret has publicly pushed back against activist investor Brett Blundy’s attempt to reshape the company’s board ahead of its annual shareholder meeting.
THE DETAILS Blundy’s investment firm BBRC International, which holds a 13% stake in Victoria’s Secret, is urging shareholders to vote against the re-election of board members Donna James and Mariam Naficy at the company’s June 11 annual meeting. In response, Victoria’s Secret released details explaining why it had previously rejected Blundy’s attempts to join the board or become chairman. The retailer cited concerns including alleged reputational risks linked to executives hired by Blundy who had faced sexual harassment allegations, as well as claims involving inappropriate attempts to obtain confidential sales information from Victoria’s Secret stores ahead of the launch of Blundy’s intimates business Léays. The company also argued that Léays represents a direct competitive conflict. Victoria’s Secret said its current board and management team are successfully executing its transformation strategy under CEO Hillary Super.
THE WHY? The dispute reflects increasing pressure from activist investors on global retail companies, while also highlighting governance, reputation and competitive conflict concerns within the fashion and beauty sectors.
Source: WWD
