Key facts
- Australian billionaire Brett Blundy is leading a campaign to remove Donna James, chair of Victoria's Secret & Co.
- Blundy's firm, BBRC International, is the second-largest shareholder with a 13% stake.
- BBRC cites years of value destruction, misallocated capital, and anti-stockholder governance as reasons for seeking James's removal.
- Victoria's Secret has cited 'significant reputational risk' associated with Blundy's involvement in other businesses.
- The company has implemented a 'poison pill' strategy to deter hostile takeovers.
- Major proxy advisory firms have recommended shareholders support the current board.
Australian billionaire Brett Blundy is engaged in a significant campaign to oust Donna James, the long-serving chair of Victoria's Secret & Co. Blundy's investment firm, BBRC International, which holds approximately 13% of the company's shares, is the second-largest shareholder and is pushing for James's removal ahead of the company's annual meeting.
BBRC International has cited years of alleged value destruction, misallocated capital, and anti-stockholder governance as reasons for its push for changes. Blundy has been advocating for reforms and seeking a board position since 2021. He publicly voiced his concerns in May, calling for the removal of James and another director, Mariam Naficy, who has since decided not to seek re-election.
The Victoria's Secret board has opposed Blundy's requests for a board seat, citing significant reputational risks associated with his involvement in other businesses like Lovisa and Honey Birdette. The company has also implemented a 'poison pill' defense mechanism to dilute the shareholding of any potential hostile bidder acquiring over 15% of the company's stock.
Despite Blundy's activism, three prominent proxy advisory firms—Institutional Shareholder Services (ISS), Glass Lewis & Co, and Egan-Jones Proxy Services—have recommended that shareholders vote in favor of the current board. ISS acknowledged Blundy's concerns regarding James's tenure and the company's initial performance post-spin-off but concluded that the dissident has not made a compelling case for removal. The company's recent strong performance, with shares up over 50% in the past month, attributed to a renewed focus on luxury branding and the reinstatement of its fashion show, may present a significant obstacle to Blundy's efforts.