Marked down
Lew blasts Myer board
SOLOMON Lew has ramped up his attack on Myer by calling for shareholders to vote against the reappointment of all the retailer’s directors at next month’s annual general meeting.
Mr Lew, who has an almost 11 per cent stake in Myer through his retail group Premier Investments, said Myer has lost its way and is trying to sell products people don’t want to buy.
“Its stores — particularly those in suburban and regional areas — are disorderly, and it has not invested in frontline customer service,” he said in a letter sent to shareholders yesterday. “Too many of its talented retailers have left the business, and I believe it is now being run by consultants who have very little experience of running a retail business.”
In the letter, he highlighted Myer’s poor investments in TopShop and Sass and Bide, which cost the company $45.6 million in writedowns in 2016-17.
“Premier bought its stake in Myer in late March after hearing management talk up the business, and we, like many of you, have been bitterly disappointed in the result,” Mr Lew’s letter said.
“I know that many of you may have invested in the Myer IPO at $4.10 per share and have seen your investments wither away.”
He said the board needs to be held responsible for the poor performance and urged shareholders to follow Premier’s lead by voting against the appointment of all of Myer’s directors, including chairman- elect Garry Hounsell at the department store’s November 24 AGM.
Mr Lew said he met with Mr Hounsell on October 6 and asked for two Premier directors to be appointed to the Myer board, as well as for an independent non- executive director who is not connected to Premier. His requests were rejected and Premier now plans to vote against the appointment all directors proposed by Myer.