Lew fires a salvo at Myer

An angry Solomon Lew has slammed Myer over old stock that “belongs in the Salvation Army” and poor performance he says has cost him $33 million on his investment.

AN ANGRY Solomon Lew has slammed Myer over old stock that “belongs in the Salvation Army” and poor performance he says has cost him $33 million on his investment.

The retail mogul, whose Premier Investments reported higher full-year profits yesterday, attacked Myer management for not revealing massive writedowns that drove the company’s annual profit down 80 per cent and triggered a slide in shares earlier in September.

Mr Lew, Myer’s biggest shareholder, said Myer was trying to sell apparel that was up to three years old and should be in an op shop.

“That inventory belongs in the Salvation Army,” he said.

Premier Investments, in which Mr Lew holds his 10.77 per cent Myer stake, has lost $33 million from its investment in Myer, he said.

Mr Lew did not believe the company said enough about its troubles during its annual general meeting in late 2016 and at its half-year results in March.

“They were still talking the business up, notwithstanding they had a poor clearance in January,” he said.

Myer revealed earlier this month its statutory net profit dropped 80 per cent to $11.94 million in the 2017 financial year due to writedowns and a fall in revenue.