Myer CEO shown door

Next boss free to review revival strategy

MYER chairman Garry Hounsell says the ailing department store’s turnaround strategy is the right one but its next chief executive will be given free rein to review the plan.

The retailer stunned the market yesterday by announcing it was parting ways with chief executive Richard Umbers just five days after issuing its third profit downgrade in less than a year. Mr Umbers’ exit adds to the executive carnage at Myer, which has also jettisoned its deputy chief executive and chief financial officer in the past eight months.

It drew immediate fire from Myer’s disgruntled major shareholder, retail billionaire Solomon Lew, who said it represented “a total lack of judgment” and “complete abdication of responsibility” from the board.

Mr Hounsell, who joined the Myer board in September, will also serve as chief executive while a successor to Mr Umbers is found.

The former Spotless chairman said he had asked Mr Umbers to leave following Myer’s profit warning last week, which sent its share price to an alltime low. Mr Hounsell had previously strongly backed Mr Umbers, who will remain on the payroll for the next year, as the right person to revive Myer.

“The result we issued for the first half is not acceptable – that is why we acted decisively here and we will continue to act decisively,” Mr Hounsell said yesterday.

“We are impatient for a turnaround in the company’s performance and the board has determined that it is in the interests of all shareholders for there to be a fresh approach to drive our future direction.”

A former Australia Post executive, Mr Umbers took over as chief of the retailer in March 2015, when Myer axed Bernie Brookes.

Mr Umbers has been the driving force behind a fiveyear, $600 million turnaround strategy designed to restore the fortunes of the department store chain.

But more than two years in, the blueprint is yet to halt a slide in sales, profit and the retailer’s share price.

Mr Hounsell again threw his weight behind the plan yesterday but conceded any new chief would be given free rein to review it.