Premier Investments calls for removal of Myer Board

Myer CEO John King.

Premier Investments has struck out against the board at Myer and has called for its removal.

Premier, Myers largest shareholder, noted its alarm following reports in The Australian that Myer chief executive John King was softening his stance on the closure of the struggling department stores clearance floors to instead trialling a closure across three stores for a three week period.

King said, during an investor call regarding the company’s full year 2018 results, that the clearance zones were “absolutely” going to go through 2019 and that he hated them.

“The awful clearance floors are part of Garry Hounsell’s ‘green shoots’ for Myer and it appears he doesn’t want to allow Mr King to close them,” Premier Investments chairman Solomon Lew said.

“Green shoots don’t grow in the dark, Mr Hounsell, but mould does. Don’t just switch off the lights for three weeks and three stores – back your CEO and close all of these clearance stores now.”

In a statement to the media, Premier poses Myer several questions, asking if King is being forced to backtrack on his comments during the investor call, as well as what the point is in trialling something the chief executive has already publicly committed to.

The statement went on to point out that Myer investors who support King should note that he requires a board he can work with, rather than against.

A Myer spokesperson told Inside Retail that nothing has changed from what was advised at the department stores full year results, and that all clearance format stores would be closed through CY19.

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