Premier begins move on Myer board

Myer3Myer’s largest shareholder, Premier Investments, has today requested a copy of the department retailer’s shareholder register to ‘facilitate the reconstitution of the incumbent, failed board’.

In a statement, Premier said following Myer’s 2017 AGM - where there was “a significant protest vote against the board of Myer” resulting in a first strike on the remuneration report and the retailer’s current performance – it is likely that Myer’s 2018 AGM will see a second strike against the Myer board and, consequentially, a spill of the entire board.

In the latest stage of the ongoing war between Myer and its largest shareholder, Premier has requested the Myer share register to “facilitate engagement” on an EGM where a vote to reconstitute the company’s board can be taken.

“Myer’s sales and profit downgrade announcement during December 2017 demonstrated a continued disappointing downward trajectory,” Premier said.

“It is clear, consistent with widespread market expectations, that Myer will need to write down significant amounts of intangibles on its balance sheet at, or before, the upcoming interim results announcement.

“Premier strongly believes that a new Myer board with relevant expertise and experience in retail, property and business is required as a matter of urgency. It is not in the best interests of shareholders that the current Myer board be allowed to preside over another year of declining sales, eroding profits and further share price deterioration before urgently needed change is introduced at board level.”

“It should now be abundantly clear to all stakeholders in the company that a significant circuit-breaker is needed for the company to have any sustainable future. Myer shareholders, staff, suppliers, landlords and customers deserve a strong and experienced board to lead the business through the current significant challenges it faces.”

Premier chairman Solomon Lew has been publicly at war with the Myer board in recent months over its failure to turnaround the department store’s sales decline and for denying him three director seats on the board.

Premier has also previously stated that it believes it was misled into buying its 10.77 per cent stake in Myer by retailer’s market updates.

“Rather than allow another year of decline and value-destruction under the current Myer Board, Premier is working towards an EGM that will allow Myer shareholders to have their say and provide them with an opportunity to reconstitute the entire Myer board with an experienced and performance focused board capable of addressing the current challenges and fulfilling the potential of the Myer brand and business,” said Premier.

Premier said it was willing to fund” all reasonable costs of the proposed EGM in the interests of all shareholders.”

Myer said it would not be commenting on Premier’s statement.

 

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