Solomon Lew’s Premier Investments gets personal as Myer stoush rumbles on

Premier Investments has launched a fresh strike on Myer, querying the business acumen of incoming chairman Garry Hounsell.

 

In a blistering fresh attack this morning on incoming Myer chairman Garry Hounsell, Solomon Lew’s Premier Investments has questioned the business acumen of the new department store chairman and once again demanded the release of its first quarter trading performance at the Myer strategy day on November 1.

In a stinging letter today, Premier Investments (PMV), which is chaired by Mr Lew and is Myer’s biggest shareholder with a 10.8 per cent stake, has made another personal attack on Mr Hounsell.

Premier already announced this week it would vote against the election of Mr Hounsell to the Myer board on November 24, as well as two other Myer directors up for re-election.

It is once again ratcheting up the pressure with a new missive aimed at the Myer board and Mr Hounsell in particular.

Premier has warned Myer (MYR) it will also be paying close attention to the retailer’s management presentation on November 1 to see if it will try to shift the goal posts of previously released sales and earnings targets. It fears they will be lowered as Myer’s trading has soured this year.

“Myer shareholders are being asked by their Board to support the election of Mr Gary Hounsell at the AGM on November 24 in spite of the fact that he has committed to the current failed “New Myer” strategy, which he has claimed is showing evidence of “green shoots” for the company,” the Premier letter issued today reads.

It has leapt on comments from Mr Hounsell that there are “green shoots” of a recovery at Myer after a poor year that included a shock profit downgrade.

Premier wants Myer to release its first quarter sales on November 1 to show if this is indeed the case.

“Premier again calls on the Myer Board, which claims to have strong corporate governance credentials, to provide evidence that “New Myer” is creating “green shoots” by releasing its Q1 2017/18 sales and profit figures at its “strategy day” on November 1 so that shareholders can make a fully-informed decision as to their vote at the AGM either in support of, or against, Mr Hounsell and two other nominees.”

Premier has also aimed another personal missile at Mr Hounsell, questioning his business acumen.

“Shareholders need to know if their incoming chairman has sound judgment and business acumen before casting their vote. Mr Hounsell claims that “New Myer” is showing signs of improving the business. If Myer reports its sales and profit results (i.e. evidence or otherwise of “green shoots”) after the AGM voting is completed, how can it be deemed to be a fair vote? This is a key corporate governance issue for the Myer Board.

“Premier will also be monitoring very closely any attempt by Myer on November 1 to shift the goalposts on the “New Myer” strategy’s key financial goals, and advises its fellow shareholders to do the same.”

Outgoing chairman Paul McClintock this week hit back at Mr Lew, calling out his aggressive and personal attacks.