Myer board criticism ‘a furphy’
INCOMING Myer chairman Garry Hounsell has dismissed as “a furphy” criticism from high-profile shareholder Solomon Lew that the board of the department store chain lacks retail experience.
Mr Hounsell, a former Spotless chairman and Qantas director, says Myer’s turnaround plan is beginning to show “green shoots” and its board has the right mix of skills to revive the iconic retailer’s fortunes.
His defence of the Myer board comes after Mr Lew last month launched a stinging public attack on the group, saying it had “lost its way” and its directors lacked retail experience.
Mr Lew is the biggest shareholder in listed retailer Premier Investments, which in turn is the biggest shareholder in Myer.
Private companies associated with Mr Lew and his family are also key clothing and toy suppliers to Myer.
Premier paid $101 million to grab an 11 per cent stake in Myer in May, paying $1.15 a share. Myer’s share price has subsequently fallen to 73.5c.
“I think it’s a furphy,” Mr Hounsell said of the suggestion the Myer board lacked a strong background in retail.
“You do need some retail skills which the board has, but you need other skills — we’ve got great digital skills and online selling skills, great compliance and accounting skills and I come with a very general background,” he said.
“Really good boards have a diversity of skills and experience. Just because this is a retail company doesn’t mean every single person who sits on the board needs to be a retailer.”
Myer yesterday said Mr Hounsell would replace Paul McClintock as chairman at its annual meeting next month.