Lew targets Myer boss in new attack

MYER’S biggest shareholder, Solomon Lew, says the 117year-old department store chain is in peril under its new executive chairman and could soon stop paying dividends.

Mr Lew has launched another savage attack on the chairman, Garry Hounsell, branding him “incompetent” and “discredited” and saying he continues to back a “dead strategy”.

He has made the comments in a new letter to Myer shareholders, where he urges them to support his bid to replace the retailer’s entire board.

“Myer is in peril and its failed board and discredited chairman must be removed,” Mr Lew said.

“Myer has a discredited chairman for a CEO, a failed board, a dead strategy, declining sales and profits, an artificially-inflated balance sheet and massive liabilities.

“Any remaining doubt that Myer is in peril should now be removed from the minds of all of shareholders.”

Myer shares fell another 3c, or 5.5 per cent, to a fresh alltime low of 52c yesterday after Mr Lew circulated the letter.

Mr Lew is sounding out Myer’s major investors to form a board based around three of his hand-picked nominees.

If enough investors back his plans, Mr Lew will ask shareholders to vote on the challenger board at an extraordinary general meeting.

Mr Lew’s Premier Investments, whose stable of brands includes Just Jeans, Smiggle, Peter Alexander and Port- mans, has a 10.8 per cent stake in Myer.

The latest attack from the retail billionaire comes after Mr Hounsell last week ousted Richard Umbers as Myer’s chief executive.

Mr Hounsell, who chairs travel agency Helloworld and sits on the Treasury Wine Estates board, has taken on both the chairman and chief executive roles at Myer until a new chief is found.

Credit Suisse retail analyst Grant Saligari slashed his share price forecast for Myer to just 20c earlier this month.