Victoria’s Secretary Investors Reject Billionaire Blundy’s Board Challenge

Shareholders overwhelmingly voted to keep the existing board in place, delivering a decisive defeat to retail billionaire Brett Blundy's campaign for control.

Key Details

In a strong show of support for current leadership, shareholders of Victoria’s Secret re-elected all nine of the company's director nominees during the annual meeting on Friday. This vote effectively ended retail billionaire Brett Blundy’s bid to gain control of the board.

Blundy had sought to remove Chair Donna James and three other board members, intending to appoint himself and three other nominees in their place. However, the proposal was overwhelmingly rejected.

• James received approval from over 99% of votes cast by investors other than Blundy’s BBRC International, and over 83% of all votes cast.
• Each of the other director nominees received at least 96% approval excluding BBRC votes, or at least 81% of all votes cast.

Background

Blundy’s investment vehicle, BBRC International, is Victoria’s Secret’s second-largest investor, holding a 13% stake. Last month, Blundy withdrew his original resolution to appoint his own slate of directors and instead focused solely on removing Chair Donna James.

The company had previously raised serious concerns about Blundy’s campaign, alleging that BBRC violated US securities laws and had a conflict of interest. Victoria’s Secret also cited potential risks from Blundy’s track record, specifically mentioning:

• Allegations at BBRC investments Lovisa and Honey Birdette
• The hiring of former David Jones CEO Mark McInnes, who was sacked in 2010 following allegations of inappropriate behavior

Statements

“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.” — Victoria’s Secret

In a previous statement leading up to the vote, Blundy had made his case for change, saying:

“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.” — Brett Blundy