logo
Activist investor calls for Victoria's Secret board overhaul amid losses

Activist investor calls for Victoria's Secret board overhaul amid losses

Yahoo17-06-2025
Activist investor Barington Capital Group is calling for Victoria's Secret to restructure its board of directors and scrap its recently adopted shareholder rights plan.
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.
Read On The Fox Business App
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
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Astronomer HR chief Kristin Cabot resigns following Coldplay 'kiss-cam' incident
Astronomer HR chief Kristin Cabot resigns following Coldplay 'kiss-cam' incident

CNBC

time20 minutes ago

  • CNBC

Astronomer HR chief Kristin Cabot resigns following Coldplay 'kiss-cam' incident

Days after Astronomer CEO Andy Byron resigned from the tech startup, the HR exec who was with him at the infamous Coldplay concert has left as well. "Kristin Cabot is no longer with Astronomer, she has resigned," a company spokesperson wrote in an email to CNBC Thursday. Cabot was the company's chief people officer. Cabot and Byron, who is married with children, were shown in an intimate moment on the 'kiss cam' at a recent Coldplay show in Boston, and immediately hid when they saw their faces on the big screen. Lead singer Chris Martin said, "Either they're having an affair or they're just very shy." An attendee's video of the incident went viral. Byron resigned from the company on Saturday. Both Cabot and Byron have been removed the company's leadership team webpage. Pete DeJoy, Astronomer's interim CEO, wrote in a post earlier this week that recent and unexpected national attention has turned the company into "a household name." In May, the New York-based company, which commercializes open source software, announced a $93 million investment round led by Bain Ventures and other investors, including Salesforce Ventures.

Private Credit and Wealth Strategies Boost Blackstone's Growth
Private Credit and Wealth Strategies Boost Blackstone's Growth

Wall Street Journal

time2 hours ago

  • Wall Street Journal

Private Credit and Wealth Strategies Boost Blackstone's Growth

Blackstone is betting its private-credit strategies and funds tailored to wealthy investors will continue to boost its earnings, as the asset manager reported strong returns for this year's second quarter. During a Thursday analyst call to discuss the results, Blackstone's leaders highlighted the fast expansion in the assets the New York-based firm manages across credit and insurance strategies, which as of June 30 totaled about $407.3 billion, a 23% increase from a year earlier. That made credit and insurance the fastest-growing of Blackstone's four broad investment segments, which also include real estate, private equity and multiasset investing. Blackstone at the end of June managed more than $250 billion for insurers alone across strategies such as investment-grade private credit and liquid credit, 20% more than a year earlier, President and Chief Operating Officer Jonathan Gray said on the call.

Onward! A Personal Tribute To Ed Feulner (1941-2025)
Onward! A Personal Tribute To Ed Feulner (1941-2025)

Forbes

time3 hours ago

  • Forbes

Onward! A Personal Tribute To Ed Feulner (1941-2025)

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. It was in the mid 90's and Ed said: 'The young people who are joining the movement have a very shallow and superficial understanding of the principles of the free society. They join our think tanks, but they never went through the process of studying all the main works, the Founding Fathers, the great economists, Mises, Hayek, Friedman, conservative thinkers like Russell Kirk.' Feulner invested his time in organizations such as the Intercollegiate Studies Institute (ISI), where he served as a long-standing trustee and chairman. ISI aims to fill the void Feulner spoke of by creating fellowships and academic programs for talented young people. In addition to his role as a think tank leader, Ed Feulner also played a significant role in grant-giving foundations such as the Sarah Scaife Foundation, which supports dozens of policy think tanks. He also served as an inspiration for other foundations. 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!

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store