Updated ,first published
Retail billionaire Brett Blundy’s bid to gain control of the Victoria’s Secret board has failed in spectacular fashion after fellow investors overwhelmingly rejected his proposals at a shareholder meeting on Friday morning.
Blundy’s long-running campaign had included proposals to remove the current Victoria’s Secret chair Donna James and other board members. He had previously offered to join the board, along with his other nominees, at the shareholder meeting. Last month, Blundy withdrew his resolution to appoint nominees and re-focused the campaign on removing James.
The iconic retailer said that shareholders voted to re-elect all nine of the board’s nominees, including James, with preliminary results indicating James received the approval of over 99 per cent of the votes cast from investors other than Blundy’s BBRC International.
As a percentage of all votes cast, James was re-elected with over 83 per cent approval. Each of the company’s other director nominees received the approval of at least 96 per cent of the votes cast, excluding votes cast by BBRC, or at least 81 per cent of all votes cast, the company said.
“We thank shareholders for their overwhelming support in electing all nine of the company’s director nominees. Today’s outcome is a decisive statement of support for the current board leadership from VS&Co’s shareholders,” the company said in a statement.
“It also recognises the substantial progress, outperformance and value creation delivered under the Path to Potential strategy and reaffirms shareholder confidence in our Board’s continued oversight of that strategy.”
Last month, the Victoria’s Secret board detailed its reasons for rejecting the reclusive Australian billionaire’s bid to join its board and revealed that one of its picks had withdrawn from re-election under the pressure of the brutal battle for board seats.
The company alleged Blundy’s investment vehicle BBRC – which is its second-largest investor with a 13 per cent stake – has violated US security laws and has a conflict of interest over other investments, and cited potential risks arising from Blundy’s track record of hiring executives accused of questionable behaviour.
In the proxy battle ahead of the meeting, the Victoria’s Secret board released a letter to Blundy dated late last year, which cited potential risks arising from Blundy’s track record.
This included “hiring executives with a history of serious allegations of sexual harassment or other misconduct, and the reported and alleged instances of harassment and highly inappropriate employee policies that occurred under [his] oversight at companies [he] controlled or effectively controlled”.
It specifically mentioned allegations of misconduct and labour law violations involving two BBRC investments, ASX-listed fashion jewellery maker Lovisa and Honey Birdette, the lingerie chain that was later sold to Playboy.
In 2024, former David Jones boss Mark McInnes joined BBRC in a senior global role. McInnes was sacked by the department store operator in 2010 following allegations of inappropriate behaviour involving a female employee.
Last month, Blundy withdrew his resolutions to nominate an alternative slate of directors at the AGM and “seek to effect a change of control of the company”.
“Rather, we are asking stockholders to carefully consider our case for targeted change in the boardroom and to express a clear view on accountability at the board level,” Blundy said in a statement to other investors last month.
“We believe that the continued tenure of a 25-year director in the role of chair raises significant questions regarding board refreshment, independence of oversight and accountability to stockholders. In our view, the annual meeting represents an appropriate opportunity for stockholders to express their perspective on these issues.”
Victoria’s Secret shares are trading at their highest levels since 2021.
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Colin Kruger is a senior business reporter for the Sydney Morning Herald and The Age.Connect via email.From our partners
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