Latest news with #JamesMitarotonda
Yahoo
8 hours ago
- 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
Fashion Network
10 hours ago
- Business
- Fashion Network
Victoria's Secret faces fresh activist fight from Barington Capital
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. See catwalk The New York-based hedge fund, which owns more than 1% 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% in morning trade. Victoria's Secret requires a reconstituted board comprising directors with "proven experience in brand revitalization, 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 revitalize the iconic brand. Victoria's Secret, with a market capitalization 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%. 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 board room challenge since 2015 when it tried to put three directors on the board of casket maker Matthews International but ended up losing the vote.
Fashion Network
13 hours ago
- Business
- Fashion Network
Victoria's Secret faces fresh activist fight from Barington Capital
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. See catwalk The New York-based hedge fund, which owns more than 1% 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% in morning trade. Victoria's Secret requires a reconstituted board comprising directors with "proven experience in brand revitalization, 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 revitalize the iconic brand. Victoria's Secret, with a market capitalization 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%. 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 board room challenge since 2015 when it tried to put three directors on the board of casket maker Matthews International but ended up losing the vote.
Fashion Network
15 hours ago
- Business
- Fashion Network
Victoria's Secret faces fresh activist fight from Barington Capital
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. See catwalk The New York-based hedge fund, which owns more than 1% 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% in morning trade. Victoria's Secret requires a reconstituted board comprising directors with "proven experience in brand revitalization, 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 revitalize the iconic brand. Victoria's Secret, with a market capitalization 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%. 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 board room challenge since 2015 when it tried to put three directors on the board of casket maker Matthews International but ended up losing the vote.
Fashion Network
15 hours ago
- Business
- Fashion Network
Victoria's Secret faces fresh activist fight from Barington Capital
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. See catwalk The New York-based hedge fund, which owns more than 1% 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% in morning trade. Victoria's Secret requires a reconstituted board comprising directors with "proven experience in brand revitalization, 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 revitalize the iconic brand. Victoria's Secret, with a market capitalization 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%. 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 board room challenge since 2015 when it tried to put three directors on the board of casket maker Matthews International but ended up losing the vote.
