BBRC International, the private investment firm of Australian billionaire Brett Blundy, has voiced its concern about several performance issues at Victoria’s Secret in a letter sent to the latter’s board ahead of the quarterly earnings conference call.

BBRC, which holds a 12.9 per cent stake in the lingerie brand and considers itself one of the largest long-term stockholders, complained that the board has failed to “adequately demonstrate meaningful accountability”.

The investor listed several issues it urges the company to address during the earnings conference call this week, citing a lack of productive two-way dialogue.

BBRC stressed that Victoria’s Secret stock has been down 64.1 per cent since the firm became independent in 2021, underperforming the S&P Composite 1500 Specialty Retail Index by 93.4 percentage points. 

“What specific metrics convince the board that it possesses the competence to turn around what appears to be systematic value destruction – and why shouldn’t stockholders demand an immediate reconstitution of the board?”

The investor also criticized the board for poorly timed share buybacks totaling $625 million and the $591 million acquisition of Adore Me, which has failed to generate meaningful returns.

Other problems mentioned in the letter include insufficient board independence, lack of accountability for consistently poor decisions, and excessive chair tenure of Donna James.

“Rather than waiting for stockholders to force change through a proxy contest, shouldn’t the board proactively address the governance red flags that Ms James’s tenure represents by committing to removing her as chair immediately and refreshing the board?” BBRC stated.

In response, a Victoria’s Secret spokesperson said that the company appreciates the input of all shareholders and looks forward to continuing its engagement with BBRC to fully understand their perspective and views.

Last week, the company postponed the release of its first-quarter results following a cyberattack to its website.