Myer is reshaping governance across its Apparel Brands division, dismantling its brand-led management structure in favour of a state-based model as the retailer tightens oversight of its newly acquired fashion portfolio.

The Australian Financial Review reported the shift has resulted in the removal of about 30 per cent of leadership roles, roughly 40 management positions, across brands including Just Jeans, Dotti, Jay Jays, Portmans and Jacqui E.

Under the new structure, Myer has abolished national sales management roles, replacing them with state general managers responsible for all of the apparel brands within their region. The change consolidates decision-making that had previously sat with brand teams largely based in Victoria, with the state heads reporting to the group head of Apparel Brands.

The governance reset is a key plank of executive chairwoman Olivia Wirth’s plan to absorb Apparel Brands into Myer’s core operating platform, which spans about 700 stores across Australia and New Zealand. The portfolio was acquired from Premier Investments last year, with Solomon Lew due to join the Myer board in April following completion of the deal.

The restructure is expected to deliver annual cost savings of between $5 million and $7 million and follows a voluntary redundancy program across Myer department stores last year that resulted in about 300 staff departures. 

A Myer spokesman told AFR the state-based model would simplify the network and improve accountability at a regional level. However, retail industry sources warned the centralisation risked weakening brand autonomy as Myer accelerates integration and tightens control.