Victoria's Secret's Rebellion: Can Barington Capital Sew Up a Turnaround?

The Odds Were Never In Their Favor (Lately)

Well look what we have here. Another day another corporation scrambling to survive. It seems Victoria's Secret that purveyor of… well secrets is facing a rebellion of its own. Not from tributes fighting for survival but from an activist investor named Barington Capital. Apparently their stock has plummeted faster than Peeta Mellark falling for me. And let's be honest that was pretty fast. They say the company's stock fell more than 75% to around $18 per share. Ouch. That's gotta sting more than a tracker jacker.

Barington to the Rescue? More Like a Mockingjay of Hope

So Barington swoops in not as a peacekeeper but as an 'activist investor.' Sounds fancy right? Apparently they’re not happy with the current board of directors. They want a new crew one with experience in 'brand revitalization operational execution international expansion and shareholder value creation.' Translation: people who know how to make money and not run a company into the ground. Six of the nine current directors have been on the board since its public listing so it seems like Barington feels it is time for a change.

CEO on the Chopping Block? May the Odds Be Ever in *Her* Favor

And hold on they're not stopping there. Barington wants the new board to consider whether the current CEO Hillary Super is up to the task of turning things around. Harsh right? But hey this isn't Panem. There's no Gamemaker rigging the odds... or is there? Maybe President Snow is secretly pulling the strings behind the scenes of the lingerie industry. 'Streamline the operating model eliminating underperforming and distracting initiatives,' they say. Sounds like someone's about to get reaped.

Remembering The Good Old Days

Victoria’s Secret went public in 2021. Not long after this the shares traded at roughly $76 per share but have been on the decline ever since. Barington was actually involved in recommending Victoria's Secret separate from Bath & Body Works back in 2019. According to the news article they ended up generating a return of over 221.5% during its tenure as an advisor to the board. Looks like they might be able to get the company back on track again!

Focus Focus Focus! Or Risk Becoming District 13

Barington has a list of demands or rather 'recommendations.' They want Victoria's Secret to focus on its core brand accelerate growth in digital and international markets and streamline operations. Basically stop trying to be everything to everyone and figure out what they're good at. Focus on intimate apparel casual sleepwear swim lounge and sport as well as fragrances and body care and ramp up digital and international business growth. If they don't they might as well just disappear like District 13... though hopefully with less bombing.

A Constructive Rebellion: No Tracker Jackers Needed (Hopefully)

What sets Barington apart from other investors is their 'constructive' approach. They aren't just complaining; they're offering solutions. They want to work 'collaboratively' with the board. Unlike another investor BBRC who just sent a angry letter with negativity and second guessing Barington is trying to find a good solution for everyone. Maybe there's hope for Victoria's Secret after all. Maybe just maybe they can avoid becoming the next cautionary tale in the retail Hunger Games. And hey if all else fails they can always hire me as a brand ambassador. I know a thing or two about survival and looking good under pressure. After all I am 'the girl on fire!'