Premier Investments chairman Solomon Lew called on Myer’s entire board to step down after securing Chairman Garry Hounsell’s resignation hours before Thursday’s annual meeting
M Hounsell resigned from the board after Myer’s two largest shareholders, M Lew’s Premier Investments and Geoff Wilson’s Wilson Asset Management have indicated they will vote against his re-election
The resignation of M Hounsell was a major victory for M Lew, who has been trying to take control of the board by appointing his own representatives since Premier Investments bought an 8% stake in Myer at $ 1.15 a share three years ago Shares fell to 22 ¢
Unappreciated, M Lew said the ouster of M Hounsell was a signal to the entire Myer board that time was up and the PM should take multiple seats on the board.
« Garry Hounsell’s resignation ahead of today’s Myer’s annual general meeting is the ‘green shoot’ that Myer’s shareholders have long been waiting for, » said M Lew in a press release ahead of the general meeting
« In the interest of all shareholders, we expect the other directors of Myer to now indicate their intention to step down in an orderly fashion or face an extraordinary general meeting at which they will certainly be revoked « , he declared
JoAnne Stephenson, a former KPMG partner who has served on the board for four years, has been appointed interim chair as a global search is undertaken to find a permanent replacement chair
This will now allow Myer to benefit from clean air after a difficult period for the company
However, M Lew said a global search for a new chairman was a waste of time and money for shareholders
« Myer is an Australian icon and requires a Board of Directors with proven Australian credentials and business experience including key skills in real estate, IT, e-commerce and logistics, « he said
« For the sake of all of Myer’s dedicated employees, its many hard-working suppliers, its loyal but frustrated customers and, of course, its long-suffering shareholders, the company must be restored to health. by installing a new independent board of directors
« Premier intends to continue consulting with other significant shareholders and together we will reconstitute Myer’s board of directors with a majority of independent directors led by an independent chairman Premier will seek representation on the new Myer’s board of directors in accordance with its participation «
M Wilson, of which WAM owns 78%, had been a staunch supporter of Myer in the past and partnered with Investors Mutual to thwart attempts by M Lew to roll Myer’s board in 2018
However, M Wilson, who recently called on the retailer to cut its board and administration fees, had doubts about Mr. Hounsell
« This will now allow Myer to benefit from clean air after a difficult period for the company, » said M Wilson
« We look forward to management remaining focused and continuing to work hard to deliver for all shareholders during the critical Christmas season, » he said
M Lew had blamed M Hounsell, a former managing partner of Arthur Andersen who took over the chairmanship in September 2017, for Myer’s poor performance, citing his lack of retail experience
M Lew turned his attack on Myer’s chief executive John King last month after the year’s results, claiming that two years into his tenure, Myer’s turnaround was in « tatters. »
M Lew also glanced at M Wilson last month, stating: « M Wilson should now recognize that Myer’s continued failure is at least in part his fault and that his investors should hold him accountable for the losses they have suffered and will continue to last unless there is an immediate change. » / p>
Despite this attack, Mr. Wilson decided Myer needed a breaker and M Hounsell should go
“Prior to Myer’s Annual General Meeting, it became clear that Myer’s two major shareholders do not support my re-election and I will not allow my current tenure as chairman to be a distraction from the hard work of the management team » M Hounsell said
“During my three years as President, we have pursued a clear strategy that has bolstered Myer’s business, allowing him to navigate the severe disruption of lockdowns from the COVID-19 pandemic to be well positioned then that we are heading towards the crucial end – commercial period of the year « , he declared
« Our online business is getting better and better, growing nearly 100% in the second half of 2020 to become one of the largest and fastest growing online retail stores in Australia, and the Customer First strategy led by our CEO, John King, and the management team see our stores well stocked and well prepared for the summer «
« Throughout my tenure we have been resolutely focused on customer satisfaction and improving business performance – and we have been determined not to allow anything to distract us from this mission »
The question now is whether M King and the other directors will resign, making way for M Lew or forcing him to call an extraordinary general meeting and appoint his own representatives to the board
Ms Stephenson said it was essential that the leadership team at M King and de Myer would be able to execute the strategy during the all-important trading peak period between Black Friday and the January inventory sale without further disruption
« It is hoped that my appointment as interim president will allow this to happen, » said Ms Stephenson
Myer shares fell 62 percent to 225 ¢ after M’s resignation Hounsell, suggesting that shareholders believe the retailer is facing yet another period of instability
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Myer, Garry Hounsell, Solomon Lew, resignation, board of directors, president, annual general meeting
News from around the world – UA – Lew requests that the entire board of Myer’s administration goes after president’s resignation
