US lingerie brand Victoria's Secret is facing pressure from activist investor Barington Capital Group to replace its board of directors and scrap its recently adopted shareholder rights plan.
Barington Capital urged Victoria's Secret to focus on core categories and initiatives. Source: Sorbis/Shutterstock.
Investment group Barington is pushing for Victoria's Secret board members with experience in renewing brands, improving operational efficiency, growing global markets and increasing shareholder returns.
Barington also calls Victoria's Secret's shareholder rights plan a “poison pill” and argues that it could discourage offers that might otherwise increase the company's value. Barington believes that sends a negative signal to the market.
Barington owns more than 1% of the company's outstanding common shares and has criticized the brand's performance since its spinoff from L Brands in 2021.