Gordon Cairns takes over as David Jones chairman

DAVID Jones has appointed Gordon Cairns as its new chairman, taking a big step towards stabilising its embattled board.

Lion Nathan executive Gordon Cairns 26 Jul 2000. p/

DAVID Jones has appointed Gordon Cairns as its new chairman, taking a big step towards stabilising its embattled board.

The department store chain late yesterday revealed Mr Cairns, now Origin Energy chairman and a former Westpac director, had taken the post with immediate effect.

He has been chosen after a big boardroom shake-up last month that claimed the scalp of chairman Peter Mason and two other directors.

The appointment brings some much-needed certainty to the retailer’s chain of command, with chief executive Paul Zahra also indicating last year that he intended to resign once a replacement was found.

Key institutional investors who have called for Mr Zahra to stay will be hoping the appointment bolsters their case.

It is believed there was some friction between Mr Mason and Mr Zahra.

David Jones’ deputy chair Jane Harvey, announcing the appointment after the market closed, said Mr Cairns had “outstanding” credentials.

He had an “intrinsic understanding of retailing and businesses with a strong customer centric focus,” said Ms Harvey, who led the recruitment hunt.

Among former roles, Mr Cairns ran beverage group Lion Nathan — now called Lion — from 1997 to 2004 and had senior roles with PepsiCo and Cadbury Schweppes.

He will have to hit the ground running, with David Jones being targeted by rival Myer for a merger.

Myer approached David Jones in October but was rebuffed by the target group’s board. Following investor criticism and a renewed approach from Myer last month, David Jones directors agreed to talk.

Mr Mason announced last month he would resign amid a barrage of criticism from investors about his handling of the merger push and for approving controversial share trades by two directors a day after Myer’s first approach.