More executives resign from Solomon Lew’s fashion arm Just Group, as Myer mulls deal

A group of key executives from Solomon Lew’s Just Group retail division have resigned, adding to a growing list of management departures, just as Myer is mulling buying the unit.

More executives are leaving Just Group, whose brands include Just Jeans, ahead of a possible sale to Myer. Picture: Bloomberg

A group of key leasing and property executives, as well as the boss of people and culture, have resigned from the division that houses the portfolio fashion and apparel brands that billionaire Solomon Lew is pondering selling to Myer, further widening the hole left by executive talent that have walked out the door recently.

Just Group, the retail division within Mr Lew’s Premier Investments and which owns fashion brands Portmans, Just Jeans, Dotti, Jacqui E and Jay Jays, has lost four property executives within a short period of time of each other who are responsible for a wide range of crucial leasing and property deals with shopping centre owners.

Smiggle, the kids stationery chain also owned by Mr Lew’s Premier Investments, has lost is chief executive after he was sacked, followed by resignations of a handful of other executives.

Sources close to shopping centre landlords told The Australian that many of the property executives who will be departing Just Group will take with them decades of experience in the complex and crucial art of negotiating leases and property deals.

Simon Day, general manager for leasing at the Just Group, has accepted a role at home furnishings retailer Adairs, The Australian has confirmed, and is expected to start there in the first half of next year.

His planned exit has been followed by general manager for leasing Chad Moussi and Andrew Lucas, another leasing general manager, and Daniel Mercieca, a general manager for finance, retail and procurement.

All of these executives have been at Just Group for more than 10 years, with Mr Mercieca serving 16 years. They are believed to be serving out long work-out dates that extend well into 2025, sources within Myer and Just Group told The Australian.

Premier Investments chairman Solomon Lew. Picture: AAP Image

The fresh resignations of property and leasing executives from the Just Group – building on a growing list of other executive departures – comes as Just Group general manager of people and culture Louise Bilston has also departed Mr Lew’s empire, having begun a new role at global fashion house Forever New in September.

The resignations of the four leasing and property executives is bad timing for Myer as its own executive general manager for property, store design and development, Tim Clarke, is retiring and leaving the department store in March as part of a leadership reshuffle orchestrated by Myer’s recently appointed executive chairman Olivia Wirth.

But with Ms Wirth and her advisers at Myer now negotiating to acquire the retail and apparel brands (Portmans, Just Jeans, Dotti, Jacqui E and Jay Jays) from Mr Lew’s Premier Investments, she might find her acquisition comes with a shrinking pool of executive talent.

The Australian revealed in September that Just Group executives from the businesses, including the brands Just Jeans, Portmans and Dotti, had seen top managers depart in the past two years, while others resigned but are still serving long work-out dates.

According to sources within both the Myer and Premier Investments camps, recent executive departures from Mr Lew’s retail apparel division include Dotti boss Deanna Moylan and Just Jeans head of product Louise Donnegan.

Other departures include head of Just Jeans Matt McCormack, head of Portmans Jade Wyatt and head of Jay Jays Linda Whitehead.

Separate to these departures, the boss of Premier Investments’s high-growth retailer Smiggle, John Cheston, handed in his resignation in June to accept the role as the CEO of ASX-listed jewellery chain Lovisa. Initially serving 12 months’ notice he was sacked in September by Premier Investments, which claimed Mr Cheston had “engaged in serious misconduct and a serious breach of his employment terms”. This misconduct was never detailed. Mr Cheston has denied any wrongdoing.

Three key executives from Smiggle later resigned: global head of retail operations Chantelle Hayes, global marketing manager Emma Fulford and global head of sourcing and product Chelsea Brunsdon.

Premier Investments has racked up a growing list of executives leaving the billionaire’s retail empire.

Myer executive chairman Olivia Wirth is considering buying the fashion and apparel brands from Solomon Lew’s Premier Investments. Picture: John Feder

At Premier Investments’ full-year results presentation in late September Mr Lew, who is the company’s chairman and largest shareholder, said the retailer experienced very little staff turnover or loss of executives to rivals.

“At head office, we employ 650 team members, and I can honestly say we hardly lose any staff to competitors. There are instances where people move on or they move to the country or interstate, but it’s really rare,” Mr Lew said.

Sources told The Australian the growing departure of key Just Group executives and the thinning its leadership ranks was becoming unsettling within some management ranks at Myer, with almost a dozen key executives leaving or having left already just as it considers buying the business.

But at this stage it is not considered a threat to scuttle the entire deal, with the benefits to Myer of expanding into the five fashion brands and broadening its retail base highly advantageous.

The potential acquisition was first announced in June and would potentially see Myer issue shares to Premier Investments in return for the portfolio of fashion and apparel brands.

The deal would give Myer for the first time stand-alone stores outside of its traditional department stores, with Mr Lew’s Just Group having more than 700 stores spread across the five fashion and apparel brands.

Under the proposed transaction those Myer shares would then be handed to Premier Investments shareholders, which would see Mr Lew personally become the largest shareholder in Myer and likely be offered a board seat.

It is believed Ms Wirth is aware of the senior executive departures from Just Group, as she and her board contemplate buying Just Group’s portfolio of retail apparel brands.

Premier Investments is still considering demerging its sleepwear brand Peter Alexander, while plans to demerge Smiggle have been temporarily shelved.

A spokeswoman for Premier Investments declined to comment.

Originally published as More executives resign from Solomon Lew’s fashion arm Just Group, as Myer mulls deal