Key Takeaways:
(Bloomberg) -- Victoria’s Secret & Co. has accused its third-largest shareholder, Australian billionaire Brett Blundy, of corporate espionage, escalating a proxy battle ahead of its June 11 annual meeting. The company claims a senior employee of Blundy’s BBRC International fund visited at least 17 stores to illegally obtain trade secrets.
“The board determined that Mr. Blundy’s appointment would result in serious reputational, legal, conflict of interest and governance risks to the Company,” Victoria’s Secret said in a letter to shareholders. The board cited Blundy's "pattern of hiring executives with a history of serious allegations of sexual harassment" and the launch of his competing lingerie brand, Léays, as key concerns.
The lingerie retailer alleges that a senior BBRC adviser falsely presented himself as a Victoria's Secret affiliate to gain access to confidential sales information in late 2024, just before Blundy launched Léays in 2025. While BBRC’s lawyers confirmed the data was destroyed, the board said Blundy’s actions demonstrated “an attitude toward compliance with law and conflict issues that is wholly inconsistent with the board’s expectations.” BBRC, which holds a 13% stake, is urging shareholders to vote against the re-election of board chair Donna James and director Mariam Naficy.
The dispute threatens to derail the company's turnaround under CEO Hillary Super, who has overseen a 152% total shareholder return since her appointment in August 2024. In response to the proxy contest, director Mariam Naficy has withdrawn her candidacy for re-election. The board is now searching for a new director with technology and AI expertise.
Implications for Shareholders
The escalating conflict introduces significant uncertainty for Victoria's Secret shareholders, pitting the board's strategic turnaround against an activist investor's push for change. The outcome of the proxy vote on June 11 will be a critical test of shareholder confidence in the current leadership and its "Path to Potential" strategy, which has driven recent outperformance. Investors will be closely watching for any further developments that could impact the company's stock price and long-term stability.
This article is for informational purposes only and does not constitute investment advice.
