Activist hedge fund Barington Capital Group is preparing a campaign to shake up Victoria’s Secret’s board of directors and challenge a shareholder rights plan adopted earlier this year, according to a source familiar with the matter.
The New York-based investment firm, which holds over 1% of Victoria’s Secret shares, believes the lingerie retailer has underperformed since its 2021 spin-off from L Brands and needs new leadership to restore value. Victoria’s Secret stock has plunged around 55% year-to-date, leaving the company with a market capitalisation of roughly $1.45 billion.
Barington aims to replace most or all of the company’s board and is calling for an end to the so-called “poison pill” plan implemented in May to defend against hostile takeovers.
The plan was introduced after BBRC International Private Limited raised its stake to around 13%.
The activist investor argues that Victoria’s Secret should refocus on core initiatives, such as its bras business and the relaunched Angels campaign, while accelerating digital transformation and international expansion.
Barington is also critical of CEO Hillary Super, who took over in September 2024 after leading Savage X Fenty. The firm claims she lacks public company experience and that the broader board is ill-equipped to revive the iconic brand.
In a statement, a Victoria’s Secret spokesperson said Barington had not yet reached out directly, but that the company looked forward to “discussing their views.” The company reaffirmed its confidence in its current strategy and leadership team.
Barington sees significant untapped value in Victoria’s Secret’s beauty segment, reportedly valuing it on par with the retailer’s entire market capitalisation.
The hedge fund has a history of shareholder activism across the retail space, including prior campaigns at L Brands, Macy’s, and Hanesbrands.
Earlier this year, it mounted a board challenge at Matthews International, its first since 2015, but failed to win any seats.
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