Barington Capital Takes Over 1% Stake in Victoria’s Secret, Pushes Board Overhaul and Ends "Poison Pill" Plan Amid Losses

Activist investor Barington Capital Group has acquired a stake of over 1% in Victoria’s Secret and plans to continue increasing its holdings in the lingerie retailer. The hedge fund is pressing Victoria’s Secret to overhaul its board and to terminate a recently adopted "poison pill" plan, according to a letter sent to shareholders. This development adds to mounting pressure on Victoria’s Secret, which has struggled with declining sales, loss of market share to competitors such as Skims, and management instability marked by three CEOs in four years. The company has attempted to redefine its image following a series of scandals, but these efforts have yet to restore growth.

Amid ongoing losses, activist investors are calling for strategic changes, with some suggesting that Victoria’s Secret and its activists should consider finding a buyer to take the company private. CEO Hillary Super recently acknowledged that the company’s marketing had become "too serious" in recent seasons, highlighting challenges in balancing the brand’s past and future. Separately, activist investor Starboard Value has built a stake exceeding 9% in TripAdvisor after the online travel-review company rejected takeover offers in the past year.