Myer boardroom coup: Billionaire Solomon Lew flags plans to spill retailer’s board
BILLIONAIRE fashion magnate Solomon Lew is plotting to overthrow the board of Myer in a bid to revive the fortunes of the ailing department store chain.
Business
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BILLIONAIRE fashion magnate Solomon Lew has hatched an audacious plan to overthrow the Myer board in a desperate bid to revive the fortunes of the ailing department store retailer.
In a move that decisively turns up the heat on the ailing retailer, Mr Lew will engage with shareholders in Myer to assemble a rival board to challenge and replace the retailer’s existing one.
Mr Lew’s Premier Investments, a retail vehicle whose stable of brands includes Just Jeans, Smiggle, Portmans and Peter Alexander, is the biggest shareholder in Myer with a stake of almost 11 per cent stake.
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Premier has previously pushed to have three directors on the existing eight-person Myer board.
In a statement today, the group said it was now looking to replace the entire board at an extraordinary general meeting.
“Premier will, over the coming weeks, caucus with other Myer shareholders to determine appropriate independent candidates for the remainder of the new Myer board to be put to all shareholders for voting at the proposed EGM (extraordinary general meeting),” it said.
The group said it was working towards such an extraordinary general meeting “rather than allow another year of decline and value-destruction under the current Myer board”.
The meeting would “allow Myer shareholders to have their say and provide them with an opportunity to reconstitute the entire Myer board with an experienced and performance-focused board capable of addressing the current challenges and fulfilling the potential of the Myer brand and business”, Premier said.
It said the profit downgrade issued by Myer leading into Christmas — its peak earning season — again demonstrated its board was not up to the task of reversing a “disappointing downward trajectory”.
Myer would clearly be forced to soon announce major writedowns on the value of its brand and goodwill, Premier said.
“Premier strongly believes that a new Myer board with relevant expertise and experience in retail, property and business is required as a matter of urgency,” it said.
“It is not in the best interests of shareholders that the current Myer Board be allowed to preside over another year of declining sales, eroding profits and further share price deterioration before urgently needed change is introduced at board level.”
Premier failed in its bid to topple Myer’s new chairman Garry Hounsell and two other directors at the retailer’s annual meeting in November.
But it did draw blood by gaining a “first strike” against the group’s remuneration report.
Premier said it was prepared to fund all “reasonable costs” of the proposed extraordinary general meeting.
Myer shares were down 0.8c, or 1.2 per cent, at 64.2c in mid-afternoon trade.
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