Lew ‘regrets’ Myer stake

Retailer pushes ahead with bid to unseat board

BILLIONAIRE retailer Solomon Lew said he regrets buying an 11 per cent stake in Myer and reiterated he and other shareholders were misled by the company about its trading position.

The regret by the Premier Investments chairman, however, appears to have strengthened his determination to unseat the Myer board, including yesterday by dividing the Myer camp and offering public support to the department store’s new chief executive John King.

Speaking at the annual meeting of Premier Investments, Mr Lew (pictured) said he would use “all options” to remove Myer’s “clueless” board but he would support Mr King and senior management.

“I had hoped that by now the Myer board would have seen the writing on the wall and have resigned in favour of a new independent board,” he said.

“Instead in the past year Myer reported a net loss of $486 million for the year – more than the company’s current market capitalisation.

“Its share price has fallen by half to just 40 cents with no dividends paid. This represents destruction of approximately $270 million shareholder value during this short period alone and destruction of more than $2.2 billion since Myer’s ASX listing in 2009.”

Mr Lew said he plans to attend the Myer annual meeting in Melbourne today to vote against the company’s remuneration report.

If a majority of shareholders vote against the report, it will be a second strike and means shareholders can then vote to spill the entire Myer board. Mr Lew also told Premier shareholders that political instability and lack of wage rises were impacting consumer confidence and spending.

“The retail sector has not been helped by the continued turbulence in the Australian political landscape,” he said.

“This has created sustained and unwelcome uncertainty for the economy and the retail sector, which has also faced pressure as households feel the effects of higher costs of living, coupled with a period of sustained wage stagnation.”

Premier Investments paid $101 million for an 11 per cent stake of Myer in March last year, paying $1.15 a share. .

“Despite the disappointing investment in Myer,” Mr Lew said the company continued to increase sales and earnings before interest and tax to deliver seven consecutive years of growth.

The company owns retail brands including Smiggle, Just Jeans, Peter Alexander, Dotti, Jay Jays and Portmans.