Activist investor calls for Victoria's Secret board overhaul amid losses
James Mitarotonda, the CEO of the New York-based hedge fund, which owns more than 1% of the company's outstanding common stock, told Victoria's Secret Chair Donna James in a letter Monday that it has failed to realize its potential since its separation from its parent company, L Brands, in 2021, with the current board overseeing the "destruction of $2.4 billion in shareholder value."
Mitarotonda argued that the company's current leadership, including CEO Hillary Super, lacks the experience and strategic clarity necessary to lead a successful turnaround. Barington noted that Super has limited chief executive and public company experience with only a brief tenure in intimate apparel.
Macy's Wants Bloomingdale's, Bluemercury To Stay Put
Mitarotonda also stressed concerns that Super has not gained the confidence of employees, and criticized her focus on relaunching secondary brands such as Pink and expanding into athleticwear, "while failing to prioritize the company's core business and international growth," saying it is a sign of a "lack of strategic focus."
Shares of Victoria's Secret rose Monday morning after the letter was published on the investor's website.
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Victoria's Secret Shuts Down Website, Some In-store Services After 'Security Incident'
Six of the nine current board of directors sat on the board during the company's decline, and the remaining two independent directors "have limited experience successfully scaling global consumer businesses, according to Barington.
"We believe that Victoria's Secret requires a reconstituted Board comprised of directors with proven experience in brand revitalization, operational execution, international expansion, and shareholder value creation," Mitarotonda wrote, adding that the retailer "should consider replacing a majority – if not all – of the Board with independent directors who bring relevant backgrounds, fresh perspectives, and a strong track record of value creation."
Meanwhile, the activist investor, which also has a stake in Macy's, said it is also disappointed by the company's recently adopted "poison pill" plan, calling it counterproductive.
"Equally troubling, it risks entrenching management and the Board at a time when meaningful change is warranted," the letter continued. "Academic research and realworld experience demonstrate that companies with weak governance structures and strong anti-takeover provisions tend to trade at lower valuations."
To help the brand "regain its footing and succeed," the investor said the company needs to focus on core product categories, including bras, reinvest in digital and international markets and streamline its operating model.
Barington said it had previously worked with L Brands to help implement key initiatives. During its tenure as an adviser to its board of directors, the share price of the company increased by 221.5%.Original article source: Activist investor calls for Victoria's Secret board overhaul amid losses
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Ed Feulner and three of his main intellectual inspirations: G.K. Chesterton, Russell Kirk, and F. A. ... More Hayek painting by Deborah Melvin Beisner. Photo of a copy of the painting in the author's possession Dr. Edwin J. Feulner Jr. was such a significant policy player for over 50 years that, although numerous leaders have already shared memories of how he influenced their lives, there is ample room for further tributes. I first heard of Ed, as he liked to be called, as an immigrant from Argentina in the late 70s. For me Ed was an immense inspiration and later an extremely generous mentor and advisor. I came to the United States in 1978 to study under Dr. Hans F. Sennholz at Grove City College. Sennholz had been a disciple of Ludwig von Mises and, though of course primarily a teacher, was very active as a speaker in conservative free-market circles. He introduced me to the work of Feulner at the Heritage Foundation. I finally met Feulner in September 1980, when I was invited to the Mont Pelerin Society (MPS) meeting held at the Hoover Institution. Feulner became a key member of the MPS, occupying several leadership positions. My acquaintance with Ed deepened starting in 1985 when I joined Antony Fisher, the founder of the Institute of Economic Affairs in London and later founder of the Atlas Economic Research Foundation. Fisher attempted to hire Feulner to lead the International Center for Economic Policy Studies (ICEPS, today the Manhattan Institute). In 1978, Fisher had been discussing the creation of a New York-based think tank with his friend William J. "Bill" Casey, then a New York lawyer. Just as Feulner was about to start his new job, the recently established Heritage Foundation made him a much better offer, and the rest is history. Although disappointed at not being able to hire him, Fisher remained friends with Feulner and invited him to speak at Atlas events. As in its early days Atlas was located in San Francisco, far from Heritage, at first, I mostly saw Feulner at the meetings of the Mont Pelerin Society. At one of those meetings, in Guatemala, I as a member of the program committee was able to invite Fr. Robert Sirico to speak. Sir John Templeton, who worked closely with Antony Fisher, attended the meeting as well. Following conversations during the meeting, Fr. Sirico decided to establish the Acton Institute for the Study of Religion and Liberty, and both Feulner and I were asked to be on Acton's founding board. At the end of our first Acton board retreat, I drove to the airport together with Ed. When I am with influential people, I ask the same questions: Whom do you always read? Who is doing great work, and should we support them more? And: What is the biggest problem we face today in our battle for freedom? I recall his answer to the latter vividly. 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A little-known fact is that Sir John Templeton, in starting his organization, included Feulner on its charter as one of the authors who should serve as a guide for its grants in the realm of free enterprise. The other authors who preceded him are Adam Smith, Ludwig von Mises, F.A. Hayek, Milton Friedman, William E. Simon, and Antony Fisher. Ideas never die, and Ed Feulner's views and legacy will continue to inspire many of us. In addition to his leadership at think tanks and philanthropic organizations, Dr. Feulner played a role in various political campaigns. He worked alongside Jack Kemp when he was vice presidential candidate with Bob Dole. He also joined the campaign for Trump's 2016 presidential run. In 2016, at a private meeting with freedom fighters from around the world, Ed told us: 'Trump put one condition, that if we disagree with a policy, like I did on tariffs, we keep our disagreement private.' Dr. Ed Feulner being recognized for his service to the Mont Pelerin Society during the Hong Kong ... More general meeting in 2014. Dr. Allan H. Meltzer (1928-2017), then president of the Society, at his side When in 2014 the Mont Pelerin Society asked me to help choose a gift for Ed Feulner, I had a unique opportunity to learn about what inspired him. Without revealing my intention, I asked him during a private meeting at his office which intellectuals had had the greatest impact on his life. He was quick to answer G.K. Chesterton, Russell Kirk, and F.A. Hayek. An artist who knew him well, Debby Beisner, captured his response in a beautiful painting. Books will be written about Ed Feulner and his legacy. For now, one of his favorite words suffices to remember his spirit: Onward!
