Lew Reignites Myer Management Assault
Myer majority shareholder, Solomon Lew, has reignited his assault on the embattled department store, with reports suggesting he is lobbying for a CEO shuffle, again.
It comes after Myer slumped to a $172.4 million full year net loss, hit by store closures and COVID19. It’s the second largest loss in company history, following a $486 million full-year loss in 2018.
The result follows net profit of $24.5 million last year, with current Chief Executive – former House of Fraser boss – John King taking the helm in mid-2018.
Reported by SMH, Mr Lew is tipped to be eyeing the support of fund manager Geoff Wilson – Myer’s second largest investor – in lieu of encouraging thousands of smaller shareholders for voting support.
Voting support at an extraordinary general meeting would seek to significantly shuffle Myer’s senior management ranks, including Chief Executive John King.
Instead, gaining Mr Wilson’s support is tipped to expedite and simplify the process of outing its current CEO.
The news continues a nearly four-year campaign by Mr Lew to assert the alleged incompetence of Myer’s board, after a notable deterioration in its balance sheet in recent years.
The retailer announced a 15.8% drop in full-year revenue to $2.5 billion, with no dividend declared.