Abigail Summerville
NEW YORK (Reuters) – Radical investor Barington Capital Group plans to push for changes to the Victoria Secret board and end the recently adopted shareholder rights plan.
The New York-based hedge fund owns more than 1% of the company, the man said, and he believes Victoria’s Secret has underperformed and lost value since 2021 from former parent company L Brands, and has asked not to be named because the matter is private.
Victoria’s Secret shares have fallen about 55% this year, with a current market value of about $1.45 billion, amid a decrease in demand for its intimate clothing.
The Wall Street Journal reported on Barrington’s plans earlier Sunday. A Victoria Secret spokesman said Barrington has not contacted the company yet, but it looks forward to “discussing their views with them.”
“We are confident that implementing our strategy under a new and experienced leadership team will continue to unlock value for shareholders,” the spokesperson said.
Barington hopes the company replaces most or all of its board and ends the “poison” program adopted in May to protect it from hostile docking. Sources said it also believes retailers should focus on core brands and initiatives such as bras and angel movements and accelerate growth in digital and international markets.
Barington believes that the company’s CEO Hillary Super took over in September 2024, with limited experience in public companies and other members of the board lacking the necessary experience to revive the iconic brand, the person said. Super was formerly CEO of Intimates brand Savage X Fenty.
The fund also sees Victoria’s Secret beauty business worth it, which it believes is as much value as the company’s market value.
Victoria’s Secret adopted the Poison Program to fend off investment firm BBRC International Private Limited, which increased its stake in the company to around 13%.
Barington is also an investor in Macy and Hanesbrands.
Founded by James Mitarotonda, Barington has been previously changed at L Brands, which is divided into Victoria’s Secret and Bath & Body Works. At Macy’s, the company hopes the department store creates a real estate unit and cuts costs to increase the stock price.
Earlier this year, Barington hosted its first mature board challenge since 2015, when it tried to put three directors on the board of directors of coffin maker Matthews International, but eventually lost the vote.
(Reported by Abigail Summerville, New York; Editors by Dawn Kopecki and Christian Schmollinger)
