(Reuters) -Lingerie maker Victoria’s Secret’s major shareholder, BBRC International, on Tuesday called for the removal of Chair Donna James and requested a board seat for its founder Brett Blundy.
Victoria’s Secret shares were down 1.5% in afternoon trading.
The company said it was conducting a thorough review of Blundy’s director candidacy and other demands put forward by BBRC, an investor in Victoria’s Secret since 2022, who has been advocating for board changes over the past two years.
The Wall Street Journal first reported on the letter to investors from the private investment firm’s founder and Australian billionaire.
The investment firm holds about 12.9% of Victoria’s Secret’s shares, making it the company’s second-largest investor, according to data compiled by LSEG.
In May, after Blundy’s firm further increased its stake, Victoria’s Secret adopted a shareholder rights plan.
Blundy said in the letter, which is now publicly available, that his appointment would fill “key gaps and boost market confidence.”
“Absent the Board reevaluating its posture and demonstrating a genuine willingness to engage in good faith, BBRC intends to replace directors at next year’s annual meeting of stockholders – if not sooner,” Blundy wrote.
The company said it was “disappointed” that Blundy had failed to respond to the company’s questions around his candidacy, but will remain in talks with BBRC regarding its demands.
In June, activist investor and New York-based hedge fund Barington Capital Group also pushed the company to alter its board and end the “poison pill” plan.
(Reporting by Chandni Shah and Prerna Bedi in Bengaluru; Editing by Vijay Kishore and Alan Barona)
