Victoria’s Secret has publicly outlined the reasons behind its decision to reject Australian billionaire Brett Blundy’s bid for a board position, while announcing that one current director will step down amid the ongoing corporate dispute.
In a regulatory filing released Monday, the lingerie company revealed it had informed Blundy in November that his board candidacy posed “potential for significant reputational and legal risk” along with “conflict of interest and competition concerns.”
Blundy, through his investment company BBRC International, has been mounting a campaign to oust two current board members – Donna James and Mariam Naficy – by encouraging shareholders to withhold their votes at the upcoming annual meeting in June.
The pressure campaign has already claimed one casualty. Naficy announced she will not seek re-election next month, citing her professional obligations and the demands of responding to BBRC’s proxy fight.
Victoria’s Secret’s November letter to Blundy detailed several concerning issues that influenced their rejection. The company cited Blundy’s “pattern of hiring executives with a history of serious allegations of sexual harassment” and reported incidents of “harassment and highly inappropriate employee policies” at businesses under his control.
The retailer also raised competitive concerns, noting that Leays, a Blundy-controlled enterprise, markets itself as an international lingerie, sleepwear and beauty company, creating direct competition with Victoria’s Secret.
Additionally, the filing alleged that a BBRC representative visited Victoria’s Secret retail locations and “according to store personnel with whom he interacted, falsely presented himself as being affiliated with Victoria’s Secret to gain access to and misappropriate confidential sales information from the stores.”
BBRC currently holds a 13% ownership stake in Victoria’s Secret and has been working to implement changes since 2024. Blundy has argued that his retail industry experience makes him qualified for a board position.
A defensive mechanism known as a shareholder-rights plan, implemented after BBRC accumulated its significant stake, is set to expire this month.
Blundy was not available for immediate comment regarding the company’s allegations.
