Latest news with #LBrands
Forbes
10-07-2025
- Business
- Forbes
How Victoria's Secret's Les Wexner Made Billions From AI Giant CoreWeave
F ive years ago, Ohio's most revered entrepreneur Les Wexner stepped down as chairman of L Brands and soon began to sell off his stake in Victoria's Secret's parent company amid controversy over his close relationship with convicted sex offender Jeffrey Epstein. Many believed that Wexner, then age 82, would quietly retire to his 340 acre estate in New Albany, Ohio. Instead, the fashion mogul has more than doubled his fortune thanks in large part to some savvy bets in a different industry: technology. Over just the past three months, the mogul's net worth–which includes assets held in his children's and wife Abigail's names–has soared to $10.1 billion from $7.9 billion, according to Forbes' estimates. The biggest driver of this increase: a 4% stake in CoreWeave, one of the buzziest artificial intelligence companies around. On Monday, CoreWeave announced it is buying crypto miner Core Scientific in a roughly $9 billion all-stock deal. Coreweave's market capitalization has almost tripled since its March IPO to nearly $73 billion today, and Wexner's stake is now worth $2.8 billion. Forbes previously reported on how Wexner scored his stake in CoreWeave, which was founded in Livingston, New Jersey in 2017. Thanks to a savvy investment by Wexner's money manager at the time, a trust established for the benefit of his four children – Sarah, Hannah, David and Harry – apparently invested $1 million in CoreWeave in 2019; it put in another $600,000 in the startup's Series A funding round in 2021. Wexner's CoreWeave shares were already worth $730 million when the company went public in March. The eight-year-old CoreWeave helps companies build data centers and loans out cloud access to much-sought-after graphics processing units, or GPUs, which firms like Microsoft, IBM and Meta pay to use to build AI models. With no shortage of customers, the company recorded $982 million in revenue during the first quarter of this year, a 420% increase versus the same quarter last year. However, it's yet to turn a profit and reported a net loss of $315 million during the same period. Nonetheless, CoreWeave's valuation continues to shoot up, minting three-comma fortunes for its largest shareholders though they can't cash out until the IPO lock-up period ends in September. Its success has producedat least four new billionaires, including CoreWeave's three cofounders: Michael Intrator (estimated net worth: $9.9 billion), Brian Venturo ($6.1 billion) and Brannin McBee ($4.5 billion). Early investor and board member Jack Cogen is also a new billionaire, worth an estimated $3.5 billion. Forbes discovered the Wexner family's stake in CoreWeave in a lawsuit filed by the wealth management firm Florence Capital Advisors in the United States District Court in the Southern District of New York in May 2024. In the lawsuit, Florence Capital Advisors claimed they were owed a nearly $7 million fee for advising Wexner's family trust to invest in CoreWeave in its very early days. A representative for the trust responded in a counterclaim that accused the wealth manager of 'fraudulent conduct' and 'multiple breaches of fiduciary duty.' The case is still ongoing. A representative for Wexner did not respond to Forbes' request for comment for this article while Florence Capital founder and CEO Greg Hersch declined to comment due to the ongoing litigation. Wexner and his family, who are estimated to have pocketed more than $2 billion after-tax from selling their L Brands shares between 2020 and 2021, likely have other startup investments we don't know about. Outside of their stake in CoreWeave, the Wexners own a New Albany-based real estate development firm with an estimated $950 million worth of land across Central Ohio, an estimated $1.4 billion art collection, a nearly 300-foot yacht, a Ferrari collection and a roughly $300 million portfolio of luxury homes around the world. Wexner's development firm, The New Albany Company, transformed the city of New Albany in the late 1980s and '90s. © 2019 Bloomberg Finance LP W exner may seem like a surprising pioneer in the fast-changing world of AI. However, he's actually spent years preparing his home state of Ohio to be at the cutting edge of the tech revolution. Wexner owns the New Albany Company, a powerful real estate development firm in Central Ohio that led the transformation of New Albany, which was still a small rural town in the early 1980s, into an economic powerhouse housing the manufacturing facilities for his many fashion brands and employing tens of thousands of people. 'Because The Limited was here, Columbus was the distribution center,' explains Kevin Cox, an Ohio State University associate professor and author of 'Boomtown Columbus,' a 2021 book about economic development in and around Ohio's capital. Since 2019, the New Albany Company has sold thousands of acres of land to tech giants like Meta, Amazon, Microsoft and Google to build data centers in the area. These projects, often propped up by generous state or local tax breaks, have generated some controversy due to the lack of jobs they tend to create. Wexner's New Albany Company also played a crucial role in securing nearby Johnstown, Ohio as the location where Intel announced in January 2022 it would build a more than $28 billion semiconductor production facility intended to help bolster domestic production of crucial computer chips. Intel's project, once slated to open this year, has stalled amid broader problems with the tech firm's money-losing chip manufacturing business. The latest update from the company indicated it will end construction five years behind schedule and is expected to open in 2031. Still, Wexner has continued to benefit from a flood of tech interest in New Albany and surrounding areas. In January, AI military juggernaut Anduril announced it is setting up a $1 billion 'hyperscale' plant near Columbus where it plans to produce tens of thousands of weapons and autonomous systems each year. In the past few months alone, Google, Meta and biotech firm Amgen have all announced expansions of their facilities in the area. Wexner's firm is often the selling end of these massive land transactions. These big tech companies are paying top dollar for large swaths of land: Last month, Google paid $741,000 an acre for nearly 85 acres in New Albany's Business Park. Former President Joe Biden spoke at the groundbreaking of the Intel semiconductor manufacturing facility near New Albany, Ohio on September 9, 2022. AFP via Getty Images The New Albany Company is also currently in the process of its own expansion. According to Columbia Business First, a subsidiary of the development firm has spent the past two and a half years quietly amassing more than 1,200 acres of land in Marysville, a small rural city about 40 minutes drive from New Albany where it plans to build two massive business parks for industrial and innovation uses. Through his New Albany Company, Wexner still owns more than 3,200 acres across Central Ohio, worth an estimated $950 million. During a May board meeting for the Wexner Medical Center and Nationwide Children's Hospital, Wexner, who is the board's chair, reportedly predicted 'probably the largest AI investment in the world will happen in Columbus.' 'Columbus is the largest city in Ohio,' he said during the meeting, as reported by The Columbus Dispatch . 'We don't publicize that – and I know in the real estate business that I'm in, people are always shocked at how big we are and how fast we've grown.' With additional reporting by Iain Martin. More from Forbes Forbes What America's Foreign-Born Billionaires Think About Trump's Immigration Policies By Matt Durot Forbes America's Richest Immigrants 2025 By Matt Durot Forbes Mamdani Doesn't Think We Should Have Billionaires. Here's Why That Will Never Happen. By Kyle Khan-Mullins Forbes Elon Musk's Robotaxi Dream Could Be A Liability Nightmare For Tesla And Its Owners By Alan Ohnsman Forbes This Secretive Company Built An Empire By Hawking Bad Financial And Health Advice On Facebook By Emily Baker-White
Yahoo
21-06-2025
- Business
- Yahoo
Investor slams Victoria's Secret ‘super squad' leadership as inexperienced, ineffectual
This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. Victoria's Secret & Co.'s CEO Hillary Super is under fire just nine months into her tenure from an investor who would like to see the lingerie giant step back into the past. In a letter to the retailer's board chair this week, Barington Capital Group Chairman and CEO James Mitarotonda advocated for bringing back the lingerie giant's 'iconic Angels campaign' and shaking up its board, and against its adoption of a poison pill last month to stave off a hostile takeover. He criticized Super as having limited leadership experience, especially at a public company or in intimates, and has demonstrated 'a troubling lack of strategic focus.' Super arrived in September after serving as Savage x Fenty CEO for about a year. In April she brought on Adam Selman, previously chief design officer for Savage X Fenty, to be executive creative director. Victoria's Secret & Co. in an email to Retail Dive expressed confidence in its 'strategy under the new and experienced leadership team' and said that, while Barington hasn't sought to engage with the company, it was open to a discussion. Mitarotonda gave Barington Capital props for L Brand's stock performance of several years ago. The firm was advising the L Brands board until the once-mammoth apparel conglomerate formally spun off Victoria's Secret in 2021. Since then the lingerie company has lost over $2.4 billion in shareholder value, he wrote. As of Friday Barington owned more than 1% of Victoria's Secret & Co.'s outstanding common stock. 'We can't bring back the Angels because we're not in that time, and that's what shot down Victoria's Secret in the first place." Jessica Ramírez Co-founder and Managing Director, The Consumer Collective The company was losing market share back then, too, however, and Barington's idea to revive the old Angels campaign would be shortsighted, according to Jessica Ramírez, co-founder and managing director of The Consumer Collective advisory firm. The brand's share losses continued through its most recent quarter. 'We can't bring back the Angels because we're not in that time, and that's what shot down Victoria's Secret in the first place,' she said. 'They didn't catch up with the times, they didn't want to innovate. To want to bring back the exact same model, the exact same messaging, from when it was successful — you have to understand that the '90s and the 2000s were a different time. That go-to-market strategy isn't going to work today.' The Angels did return last fall after a six-year hiatus, but that was a lower-key, more inclusive event, she said by phone. Mitarotonda also had linguistic criticisms, slamming 'internal rhetoric referring to senior leadership as a 'super squad'' as 'arrogant and unjustified given the company's declining performance.' He said it was surprising that executives 'expressed satisfaction' during the company's most recent earnings call, counting 14 mentions of being 'pleased' or 'proud.' Barington is unlikely to let up the pressure any time soon, according to Jason Schloetzer, a professor at Georgetown University's McDonough School of Business, who called the firm's letter 'a shot across the bow to an underperforming management team.' 'Underperforming management typically strikes a tone of seriousness and concern, so Barington may be pointing out that routinely mentioning how 'proud' management is with the company's current performance, which appears to be less than super, is well out of step with reality,' Schloetzer said by email. 'If there isn't some combination of a change to strategic direction, modest evidence of leadership change, and a tweak to board composition after this letter, I suspect Barington will make another move to shake up the company.' But it's too soon to judge Super, according to Ramírez. It will be a full year before the results of her team's efforts will be truly evident, she said. 'Victoria's Secret still has large market share, and it's a big brand, but the reality is, it has definitely lost a lot of the market and it is out of touch. They have a bunch of issues with quality, design, marketing — and while it's better, it's still not the best,' she said. In its email Wednesday, Victoria's Secret acknowledged the need for further improvement but said it's making inroads. 'As outlined on our March and June earnings calls, bras and beauty are at the center of the Victoria's Secret Path to Potential strategy, and these efforts are showing momentum in spite of the challenging market environment,' the company said. 'While we have more work to do, we are already delivering meaningful progress, including exceeding revenue and adjusted operating income guidance in the first quarter.' Recommended Reading Adidas says its Yeezy partnership is 'under review' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Express Tribune
17-06-2025
- Business
- Express Tribune
Investor demands Victoria's Secret overhaul its board
Activist investor Barington Capital Group is pushing Victoria's Secret to alter its board and end a recently adopted "poison pill" plan, according to a letter to the lingerie maker's shareholders on Monday. The New York-based hedge fund, which owns more than 1 per cent of the company, said Victoria's Secret has underperformed its competitors and lost over $2.4 billion in shareholder value since its spin-off in 2021 from former parent company L Brands. On Sunday, Reuters reported, citing sources, that Barington wants the company to replace most or all of its board and end the "poison pill" plan that it adopted in May to protect the company from hostile takeovers. "Barington has not sought to engage with us, but we look forward to discussing their views with them," a Victoria's Secret spokesperson said. "We are confident that executing our strategy under the new and experienced leadership team will continue to unlock value for our shareholders," the spokesperson added. Its shares, which have lost more than half of their value so far this year amid waning demand, were up about 3 per cent in morning trade. Victoria's Secret requires a reconstituted board comprising directors with "proven experience in brand revitalisation, operational execution, international expansion, and shareholder value creation," James Mitarotonda, Barington's founder and CEO, said in the letter. The investment firm said the retailer should focus on core categories and initiatives, like bras and the Angels campaign, and accelerate growth in digital and international markets. Barington highlighted concerns about the company's leadership, and said Chief Executive Hillary Super, who took over in September 2024, has limited public company experience, and that the rest of the board lacks the necessary experience to revitalise the iconic brand. Victoria's Secret, with a market capitalisation of about $1.45 billion currently, adopted the poison pill plan to fend off Brett Blundy's investment firm, which increased its stake in the company to around 13 per cent. Barington's pressure puts Victoria's Secret in a "precarious position" as it tries to fend off other activist investors and restore confidence in CEO's turnaround plan, eMarketer analyst Rachel Wolff said, adding that investors' growing dissatisfaction with leadership could force a change at the company's management level. Barington previously pushed for changes at L Brands, which split into Victoria's Secret and Bath & Body Works. Earlier this year, Barington mounted its first full-blown boardroom challenge since 2015 when it tried to put three directors on the board of casket maker Matthews International but ended up losing the vote.
Yahoo
17-06-2025
- Business
- Yahoo
Barington urges Victoria's Secret to overhaul leadership board
Investor group Barington insists on the appointment of Victoria's Secret board members who possess expertise in rejuvenating brands, operational efficiency, global market growth, and boosting shareholder returns. Barington also describes Victoria's Secret's shareholder rights plan as a "poison pill" and argues it could discourage propositions that might otherwise increase the company's value. It believes it portrays a negative signal to the market. Barington has a stake of over 1% in the company's outstanding common shares and has criticised the brand's performance following its 2021 spin-off from L Brands. In a letter to Victoria's Secret & Co chairperson Donna James, Barington CEO James Mitarotonda claimed the existing board has overseen a "destruction of $2.4bn in shareholder value", while approving capital expenditures and acquisitions worth $1.8bn, which it says has 'little demonstrable return'. Mitarotonda has questioned the qualifications of current executives such as CEO Hillary Super, alleging they lack the essential experience and strategic insight for an effective recovery. He also questioned Super's decision to diversify into secondary and athleticwear lines rather than concentrating on the core business and global expansion. 'Her focus on re-launching secondary brands such as Pink and expanding into athleticwear, while failing to prioritise the company's core business and international growth, indicates to us a troubling lack of strategic focus. Moreover, internal rhetoric referring to senior leadership as a 'super squad' appears arrogant and unjustified given the company's declining performance,' the letter reads. The investor also calls for accountability from the board of directors, noting that six out of nine directors were part of the board during the period of decline. Plus, it claims two independent directors do not have sufficient experience in scaling global consumer brands. 'We believe that Victoria's Secret requires a reconstituted board comprised of directors with proven experience in brand revitalisation, operational execution, international expansion, and shareholder value creation,' Mitarotonda said. In its fiscal 2024 fourth-quarter report, Victoria's Secret showed operating income and earnings per share that surpassed expectations, along with a 5% increase in comparable sales. The company posted net sales of $2.10bn for Q4, slightly up from $2.08bn during the same period in the previous year. 1. Refocus on core brand strengths – Prioritise main product lines to rejuvenate the brand's essence through excellence, creativity, and a cohesive brand story. This involves reinstating strict merchandising rules, initiating dynamic and creative marketing initiatives, and where it makes sense, bringing back popular historical features like the renowned Angels campaign. 2. Propel expansion in digital and global arenas – These sectors have demonstrated potential but seem to have stalled. Renewed investment and clear strategic direction in these areas can release significant value. 3. Simplify the business structure – Remove initiatives that are not performing well or are causing distractions in order to regain focus and improve profitability. Victoria's Secret had not responded to Just Style's request for comment at the time of going to press. However, a Victoria's Secret spokesperson was quoted by Reuters as saying: "Barington has not sought to engage with us, but we look forward to discussing their views with them. "We are confident that executing our strategy under the new and experienced leadership team will continue to unlock value for our shareholders." In December of the previous year, Barington Capital Group together with Thor Equities advised Macy's to explore structural changes after a 2.4% drop in net sales for Q3. "Barington urges Victoria's Secret to overhaul leadership board" was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
17-06-2025
- Business
- Yahoo
Activist investor calls for Victoria's Secret board overhaul amid losses
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
