Solomon Lew increases Myer stake to 15%, renews call for board to resign

Solomon Lew says he is now in a position to advocate change at the top at Myer after lifting his stake in the retail chain to more than 15pc.

Premier Investments chairman Solomon Lew has stepped up his war of words with Myer. Picture: David Caird.

Solomon Lew’s Premier Investments has stepped up its bitter war of words with Myer’s management, with the billionaire putting his money where his mouth is to creep up the share register of the struggling department store chain.

Premier Investments — Myer’s biggest shareholder — increased its stake in the company to 15.77 per cent, after buying 41.1 million shares, priced at 40c a share, with Mr Lew completing the spree with another verbal grenade lobbed at Myer’s board.

He called for all directors to resign “immediately”, branding them “missing in action” as Myer battles the worst retail conditions in decades and the fallout of the coronavirus pandemic, and has rallied other shareholders to support the exodus.

“Premier calls on the failed Myer board to resign immediately. We will work with other shareholders to reconstitute the Myer Board with directors who have expertise across retail, property, logistics and e-commerce so that Myer can reverse its decline,” Mr Lew said.

“In a market where innovative, experienced retailers are benefiting from rapid change, Myer continues to go backwards and its board is missing in action.

“Something has to change, and Premier has put itself in a position to make change happen.”

Myer declined to comment on Mr Lew’s latest spray.

Mr Lew took particular umbrage at Myer’s acting chair JoAnne Stephenson, who assumed the top job following Garry Hounsell’s shock exit ahead of last year’s annual meeting.

“We remain bitterly disappointed by Myer’s performance which continues to be disastrous for Myer’s many shareholders, employees, suppliers and customers,” Mr Lew said.

“It’s now been more than eight months since then Myer chairman, Garry Hounsell abruptly resigned on the morning of Myer’s 2020 AGM citing lack of key shareholder support for his re-election. On that day, Myer announced that Ms JoAnne Stephenson had been appointed acting chairman of Myer while a global search would be undertaken to find a replacement chairman.

“We are stunned that Premier has not heard from the acting chairman at any stage. Neither the acting chairman nor any of the remaining directors have bothered to pick up the phone to the company’s major shareholder about reconstituting Myer’s emaciated board which is bereft of the retail experience, skills and talent required to turn the business around.”

Mr Lew has been calling for Myer’s board to be dumped for the past two years. His battle with the department store’s directors got so bad that Mr Lew accused Mr Hounsell of being a liar and lawyers were nearly brought in as the two businessmen went to war in front of shareholders and the market

Mr Lew’s spending spree sent Myer shares soaring 16.2 per cent on Tuesday to 42 cents – their highest since February last year.