Endeavour chair Peter Hearl to make way for Ari Mervis; Bruce Mathieson Jr to also exit

Liquor and pubs giant Endeavour will try to put a bitter boardroom war behind it with chairman Peter Hearl to step down and Bruce Mathieson Jr also getting out the door.

Clockwise from top right: Peter Hearl, Bruce Mathieson Jr, Peter Margin and Ari Mervis.

The civil war that engulfed the board of liquor and pubs giant Endeavour Group late last year has finally claimed the job of its under-siege chairman Peter Hearl.

Board director Bruce Mathieson Jr is also stepping down in a board restructure aimed at putting the nastiness of 2023 behind it.

The slated departure of Mr Mathieson Jr comes after the public battle before last year’s annual general meeting that saw his father, Bruce Mathieson Sr, support a rebel candidate for the board and launch a savage personal verbal attack on Endeavour chief executive Steve Donohue and Mr Hearl.

As Endeavour’s largest shareholder with a stake of 15 per cent, the Matheisons will still be extended a boardroom seat. His resignation will take effect on June 30, or at an earlier date if agreed between him and the board.

Endeavour owns 1700 retail chains under its Dan Murphy’s and BWS banners as well as a network of 354 pubs – created from the pubs empire owned by the Mathieson family.

On Wednesday, the group said Peter Margin and Ari Mervis have been selected to join the board as new directors to fill casual vacancies, subject to probity and the receipt of regulatory approvals.

Mr Mervis, who is also the new chairman-elect, is increasingly being seen as the director companies turn to help restructure boards and seal rifts.

He was recently appointed as chairman of department store owner Myer as it went through years of shareholder and boardroom brawls triggered by billionaire Solomon Lew. Mr Lew had built his stake to be the retailer’s largest shareholder and used that to demand boardroom changes.

Mr Mervis is also the chairman of McPherson’s, which has gone through its own shareholder and operational turmoil.

He is also the former executive chairman of Accolade Wines and for 25 years worked with beer giant SABMiller, including running Foster’s.

Mr Margin has extensive corporate and boardroom experience as former chief executive of Goodman Fielder and National Foods and is currently chairman of Bega Cheese and chairman of Golf Australia.

Endeavour Group has announced the first phase of its board renewal.

Endeavour’s internal troubles erupted last year in the lead up to its AGM, when rebel candidate Bill Wavish, a former Woolworths supermarkets boss and executive chairman of Myer, put his hand up to run for the board and won support from Mr Mathieson Sr.

The AGM turned into a nasty public spectacle as former Woolworths boss Roger Corbett swung his support behind Mr Wavish and launched withering attacks on Endeavour, its board, CEO and chairman and was joined by the Mathieson camp in the brawl.

It also fuelled a proxy battle as the warring camps lobbied for support.

Mr Wavish eventually lost the shareholder vote at the rowdy AGM but it left Endeavour’s board in open conflict.

It is believed that negotiations for a peace deal started at the end of the AGM.

Mr Hearl will oversee the new director appointments and intends to retire from the board after Mr Mervis obtains all necessary regulatory approvals and following an orderly transition to become the new chairman, anticipated to be by the end of April.

Mr Hearl has served as Endeavour inaugural chairman since 2021, leading the company through its demerger from Woolworths as a stand-alone liquor and pubs giant that also owns more than 12,500 gaming machines and a portfolio of other businesses such as wine auction house Langton’s and numerous wineries.

“We welcome Ari and Peter to the Endeavour Group. Our focus on a deliberate and comprehensive process for board renewal has secured experienced and respected company directors. Ari and Peter’s nomination completes the first phase of our board renewal process and future director appointments will be overseen by the new chairman-elect,” Mr Hearl said.

“I have been honoured to serve as Endeavour’s inaugural chairman, a business that proudly serves customers and communities right across Australia,” he said.

Endeavour, the owner of Dan Murphy’s, BWS and 354 pubs, was engulfed in a bitter and public war last year that has now seen the departure of its chairman. Picture: Michael Marschall

Despite the personal attacks, Mr Hearl in his ASX statement acknowledged Mr Mathieson Jr’s contribution to the business.

Mr Mathieson Jr had run the pubs arm for some time before moving to the director’s position.

Although he kept his public comments limited through the Endeavour struggles last year, he was known to be at odds with much of the board and Mr Hearl in particular.

His family’s connection to the pubs arm comes from its original corporate identity as Australian Leisure and Hospitality Group.

“I am very proud to have worked and contributed to Australian Leisure and Hospitality Group and Endeavour Group over the past 25 years, as both an executive and board member,” Mr Mathieson Jr said.

“I am confident that Ari and Peter will be committed directors and their skills and experience will contribute significantly to the board and our great company. The board’s renewal sets up the Endeavour Group for strong and stable leadership to support management in driving returns for shareholders.”

Mr Mathieson Jr was re-elected to the board at last year’s AGM, but an Endeavour statement said the board intended to extend a board seat to “a suitable representative of BMG (Bruce Mathieson Group) based on BMG maintaining a shareholding in line with current levels”.

The company said BMG will nominate an alternative director in due course.

“The board looks forward to working with BMG to agree on that representative, through whom the board expects to continue to benefit from the deep experience BMG brings to bear, particularly in relation to hotels.”

Woolworths is the second biggest shareholder in Endeavour with a stake of 9.1 per cent, and at the AGM it voted against the election of Mr Wavish to the board.

AustralianSuper is Endeavour’s third largest shareholder with a 7.7 per cent stake and it also voted against Mr Wavish’s rebel bid at the AGM.