Lew launches new Myer board strike

RETAIL billionaire Solomon Lew has formally launched his latest challenge to topple the Myer board, calling on shareholders to deliver the ailing department store chain a “second strike” on pay.

Mr Lew, whose Premier Investments retail vehicle is the largest shareholder in Myer, has written to shareholders in an effort to rally them against the department store’s board and chairman.

The letter was sent out a day after Myer revealed it had cut the pay of its chairman and other board members in order to ward off a backlash from shareholders at next month’s general meeting.

Mr Lew had been expected to again challenge the Myer board, after requesting its share register at the start of the month.

In the letter which has been sent to every Myer shareholder, Mr Lew says the “failed Myer board” must be brought to account for “the destruction they have caused to this once great Australian retail icon”.

“(They) have sunk the share price, removed our dividends, sent the company into massive losses, constantly changed management, constantly changed strategies, made disastrous acquisitions, opened op-shop discount clearance floors, refused to even acknowledge issues until it is too late and have no idea how to get Myer out of its costly and unnecessary property leases,” the letter says.

Mr Lew, whose retail empire includes Smiggle, Peter Alexander, Just Jeans and Portmans, last year successfully drew a first strike against Myer’s remuneration report.

If 25 per cent of shareholders vote the report down at this year’s general meeting, they will then vote on whether all board members should stand for re-election.

If that spill resolution passes — it needs 50 per cent support — shareholders will vote on whether to retain or get rid of each director.

Such an outcome would open the door for Mr Lew to put forward a hand-picked team of directors he says are needed to save the department store.