Mark McInnes signs off from Premier Investments after $3.5bn ride

Former Premier Investments chief executive Mark McInnes has pledged to remain a long-term shareholder as he steps down from the retail group.

Premier Investments chairman Solomon Lew. left, with Mark McInnes. Picture: Stuart McEvoy

Former Premier Investments chief executive Mark McInnes, who created $3.5bn of shareholder wealth when he ran Solomon Lew’s publicly listed fashion empire for a decade, has pledged to remain a long-term shareholder as he steps down from the retailer, which owns Just Jeans to Smiggle.

Mr McInnes made his name in fashion, having run Premier and before that up-market department store David Jones, and is already fielding approaches from corporate headhunters for board roles. But at this stage he is keen to focus on his children for their last two years of primary school.

It comes as Mr McInnes serves out a non-compete clause that will prevent him joining a rival retailer until January 15, while his replacement at Premier Investments, JB Hi-Fi ex-boss Richard Murray starts next week.

Mr Murray is technically contracted to JB Hi-Fi until Friday and can be called on for help or advice from incoming chief executive Terry Smart until then. It was Mr Smart who presented JB Hi-Fi’s annual financial results last week, with Mr Murray keen to give him “clean air” to kick off the new era at the retailer.

It is not until the following Monday that Mr Murray can begin to cast his eye over Premier Investments’ accounts as he prepares to swap consumer electronics for fashion and apparel.

Meanwhile, in an email sent to Premier Investments staff as he left the building on Friday after signing off on Premier’s fiscal 2021 financial accounts, Mr McInnes welcomed the incoming chief executive and forecast the retail business had a great future ahead.

“Today is my last day as the CEO of Premier Retail and I wanted to take a moment to thank you all,” began Mr McInnes’s email to Premier Investments staff, which covers 9000 employees spread across its Premier Retail businesses such as Just Jeans, Dotti, Peter Alexander, Portmans and Smiggle. He paid tribute to his working relationship with billionaire retailer Mr Lew, who hired Mr McInnes in 2011, with the duo forming one of the most successful double acts in retail – as evident in the success of Premier Investments, its escalating profits and fourfold increase in its share price.

Former CEO Premier Mark McInnes said on his watch $3.5bn in shareholder wealth was created. Picture: Aaron Francis

“Sol, I will be forever grateful to you for bringing me on board and allowing me to work with you over the last decade.”

In that last decade under Mr McInnes’s leadership, Premier Investments’ share price rallied from $6 to $28, a gain of almost 370 per cent, which created more than $3.5bn in shareholder wealth. The Lew family were the biggest beneficiaries of that massive wealth accumulation, with Mr Lew’s Century Plaza company the largest shareholder in the retailer with a stake of 42.43 per cent.

Mr McInnes thanked his senior executive team, who had “completely reshaped the companies’ performance”.

“Ten consecutive years of record sales and EBIT results, outperforming the ASX 200 by over 200 per cent in total shareholder return, including delivering record share price growth and performance and delivering record dividends,” he wrote.

Mr McInnes also noted fast-paced growth in Premier’s Peter Alexander sleepwear chain, building and growing the Smiggle international business, outperforming the broader clothing market and crucially investing in its wholly owned Australian distribution centre which gave it the infrastructure for a global online capability.

“Premier Retail’s performance over the last decade is an entire team achievement and is a testament to all team members,” he said.

Mr McInnes told staff that Premier Investments had a bright future ahead as Mr Murray joined the team and that he would remain a shareholder.

“I know led by Sol, with the ongoing collective contribution from your senior executive team and with Richard coming on board the company’s future is very bright.

“I intend to remain a shareholder of Premier and as a former CEO, colleague and friend to many I wish you only the best as you continue your successful journey.”

According to the most recent Premier Investments annual report, Mr McInnes is a top 20 shareholder in Premier Investments, ranked 13th with 982,100 shares worth roughly $27.5m on paper.

Mr McInnes can seek work after January 15 but is initially restricted from working at certain businesses, mostly retailers, that compete closely with Premier Investments’ portfolio of fashion and apparel chains.