Australian billionaire Brett Blundy is waging a high-stakes campaign to oust the long-term chair of Victoria’s Secret & Co, setting the stage for a showdown at the company’s annual meeting in the US on Thursday.
Blundy’s investment firm, BBRC International, owns about 13% of the US-listed lingerie brand, making it the second-biggest single shareholder and giving it a potential platform to launch a hostile takeover. The Monaco-based Australian is also chair of the Lovisa jewellery brand, founder of the Léays lingerie stores and former owner of the Bras N Things and Honey Birdette brands.
BBRC is seeking the removal of long-term chair Donna James from the board after a years-long battle over the company’s strategy and its decision not to appoint him as a director. Blundy, who has a net wealth of $4.5bn according to the AFR’s rich list, has been pushing for changes at the company since about 2021 and has unsuccessfully sought a position on the board.
He went public with his concerns in May, when he asked fellow Victoria’s Secret shareholders to get rid of the chair and another director, Mariam Naficy, who has since decided not to stand for re-election. Blundy has previously said he was concerned the board was not focused on shareholders’ interest as directors were not heavily invested in the company, according to a letter filed with the US Securities and Exchange Commission. He has argued shareholders have “suffered years of value destruction, misallocated capital and anti-stockholder governance”.
The board of the lingerie and beauty company said it rejected Blundy’s past requests to be on the board due to “significant reputational risk” threatened by his involvement in Lovisa and Honey Birdette. Lovisa is defending a class action alleging it directed staff to work overtime without compensation. In 2016, Honey Birdette described reports it demanded sexist dress codes and vulgar language from employees as “mistruths”.
Such is the acrimony between the parties, the lingerie company has used a “poison pill” to ward off any attempt by Blundy to launch a hostile takeover. Under the plan, existing shareholders would be given the opportunity to buy more shares if Blundy – or any other investor – acquired a stake in excess of 15%. Three proxy advisory firms have thrown their support behind the board, arguing they are in the best position to increase shareholder value.
