One of Victoria’s Secret’s largest investors has publicly called for major board changes, escalating tensions inside the iconic lingerie retailer as it battles to regain relevance and shareholder confidence. BBRC International, led by Australian billionaire Brett Blundy, has urged the company to remove Chair Donna James and grant Blundy a board seat, citing governance concerns and a lack of strategic agility at a critical moment for the brand.

The move adds fresh pressure on the embattled company, whose stock has fallen roughly 15% since its 2021 IPO and 13% so far this year, shrinking its market capitalization to under $3 billion. Shares slipped 3% in premarket trading Tuesday following the announcement.

Activist Pressure Builds as Performance Falters

BBRC’s letter to the board, released publicly this week, accuses Victoria’s Secret of “stale leadership” and poor strategic execution. Blundy, whose firm has significant retail experience through investments in brands such as Honey Birdette and DISSH, said the company requires fresh direction to adapt to shifting consumer preferences and growing competition.

“By any measure, she [Donna James] is an over-tenured director with a stale perspective that lacks objectivity regarding the company’s operations,” Blundy wrote. He argued that Victoria’s Secret’s current governance structure “fails to inspire market confidence” and does not adequately reflect shareholder interests.

The letter marks a significant escalation in BBRC’s engagement with the company. While the firm had been privately urging changes since 2023, this is its first public step toward what could evolve into a full-scale activist campaign. BBRC hinted that it might seek to replace board members at the 2026 annual meeting if progress stalls.

Victoria’s Secret Defends Leadership and Strategic Direction

In response, Victoria’s Secret acknowledged ongoing discussions with BBRC but defended its current leadership and strategic trajectory. The company confirmed it is conducting a “thorough review” of Blundy’s potential appointment, citing conflicts of interest and antitrust considerations.

Earlier this year, Victoria’s Secret adopted a shareholder-rights plan, often referred to as a “poison pill,” designed to block hostile takeovers or activist accumulation. The company claimed BBRC may have built its stake without appropriate antitrust disclosures, adding another layer of complexity to the standoff.

Despite the mounting tensions, Victoria’s Secret’s management insists that it remains focused on driving momentum under CEO Hillary Super, who took the helm last year after leadership roles at Savage X Fenty and Anthropologie. Super’s strategy has centered on rebranding the company’s image, reviving the once-famous Victoria’s Secret Fashion Show, and launching modernized product lines intended to capture a broader, more inclusive customer base.

“We are focused on sustaining the progress we’ve made,” the company said in a statement, adding that its operational and creative transformation is gaining traction heading into the critical holiday quarter.

Retail Governance Under the Spotlight

The clash between BBRC and Victoria’s Secret underscores a broader trend in retail — activist investors demanding governance reforms and greater accountability from boards struggling to modernize. Once a symbol of American glamour and mass-market appeal, Victoria’s Secret has seen its dominance eroded by digital-first brands and inclusive competitors like Savage X Fenty and ThirdLove.

Blundy’s intervention may mark a pivotal moment for the company. His track record in building premium retail brands could lend credibility to BBRC’s push, though a boardroom fight risks distracting management just as the company enters its most important sales season.

If the board concedes to shareholder pressure, it could signal a governance reset — one that might help restore investor confidence. But if the dispute deepens, Victoria’s Secret could face an uphill battle balancing shareholder activism with operational recovery in an unforgiving retail environment.