Victoria’s Secret fends off Aussie billionaire
Updated ,first published
Retail billionaire Brett Blundy’s bid to take control of Victoria’s Secret’s board failed spectacularly after he overwhelmingly rejected offers from other investors at a shareholders meeting on Friday morning.
Blundy’s long-running campaign included proposals to oust current Victoria’s Secret president Donna James and other board members. He had previously offered to join the board of directors along with his other candidates at the shareholders’ meeting. Last month, Blundy withdrew his decision to appoint candidates and refocused the campaign on unseating James.
The iconic retailer said shareholders had voted to re-elect nine of its board nominees, including James, and preliminary results showed James received the approval of more than 99 per cent of votes from investors other than Blundy’s BBRC International.
As a percentage of all votes cast, James was re-elected with over 83 percent approval. The company said each of the company’s other director nominees received the approval of at least 96 per cent of the votes cast, or at least 81 per cent of all votes cast, excluding votes cast by the BBRC.
“We thank shareholders for their overwhelming support in selecting all nine of the Company’s director nominees. Today’s outcome is a resolute statement of support from VS&Co shareholders to the current board leadership,” the company said in a statement.
“It also recognizes the significant progress, superior performance and value creation achieved under the Pathway to Potential strategy and reaffirms shareholders’ confidence in our Board of Directors’ ongoing oversight of this strategy.”
Last month, the board of Victoria’s Secret detailed its reasons for rejecting an offer from the reclusive Australian billionaire to join the board, revealing that one of those elected had withdrawn from re-election under the pressure of a brutal fight for board seats.
The company alleged that investment vehicle BBRC, Blundy’s second-largest investor with a 13 percent stake, violated U.S. securities laws and had conflicts of interest related to other investments, and noted potential risks from Blundy’s history of hiring executives accused of questionable behavior.
In the proxy battle ahead of the meeting, Victoria’s Secret’s board of directors issued a letter to Blundy late last year outlining potential risks from Blundy’s past.
This “includes the hiring of managers with a history of allegations of serious sexual harassment or other misconduct and incidents of reported and alleged harassment and grossly inappropriate employee policies.” [his] surveillance in companies [he] is controlled or effectively controlled”.
The report specifically cited allegations of misconduct and employment law breaches relating to two BBRC investments, ASX-listed fashion jewelery maker Lovisa and lingerie chain Honey Birdette, which was later sold to Playboy.
In 2024, former David Jones boss Mark McInnes joined the BBRC in a senior global role. McInnes was sacked by the store operator in 2010 following allegations of inappropriate behavior by a female employee.
Last month Blundy withdrew his decisions to nominate an alternative board list at the AGM and “seek to seek a change of control of the company”.
“Instead, we ask shareholders to carefully consider our case for targeted change in the boardroom and take a clear view on accountability at the board level,” Blundy told fellow investors last month.
“We believe that the retention of a 25-year executive as chairman raises important questions regarding board renewal, independence of oversight, and accountability to shareholders. In our view, the annual meeting represents an appropriate opportunity for shareholders to express their perspectives on these issues.”
Victoria’s Secret shares are trading at their highest levels since 2021.
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Colin Kruger is senior business correspondent for the Sydney Morning Herald and The Age newspapers.Connect via email.
