Activist investor calls for Victoria's Secret board overhaul; criticizes leadership and calls for change

From Yahoo Finance: 2025-06-16 11:19:00

Activist investor Barington Capital Group urges Victoria’s Secret to revamp its board and ditch its shareholder rights plan. CEO James Mitarotonda criticizes the company’s leadership for failing to realize potential, resulting in a $2.4 billion loss in shareholder value. The stock rose after the letter was published.

Mitarotonda expresses concerns about CEO Hillary Super’s lack of experience and strategic focus. He emphasizes the need for a board with expertise in brand revitalization, operational execution, and shareholder value creation. Barington calls for a majority of independent directors to drive change at Victoria’s Secret.

Barington Capital condemns Victoria’s Secret’s “poison pill” plan as counterproductive, risking entrenching management. The investor advocates for a focus on core product categories, digital and international markets, and a streamlined operating model to help the brand succeed. Barington notes previous success in boosting L Brands’ share price.

Barington Capital also criticizes Macy’s for adopting a similar “poison pill” plan, warning of lower valuations for companies with weak governance structures. The investor emphasizes the importance of governance and shareholder value creation for long-term success. Victoria’s Secret must act decisively to regain momentum and appeal to investors.

Read more: Activist investor calls for Victoria’s Secret board overhaul amid losses