In Myer’s first AGM following its October announcement that it had reached a deal to acquire Apparel Brands which are a part of Premier Investments, there was an unexpected appearance at the meeting on Tuesday in Melbourne – Solomon Lew.

Myer agreed to buy Just Jeans, Jay Jays, Portmans, Dotti and Jacqui E in a move that will result in annual sales of more than $4 billion, $250 million in earnings. Myer currently has 56 stores, but will take on 719 Apparel Brand stores across Australia and New Zealand.

Part of the deal also gives Lew control on Myer’s board. He was the former chairman of the old Coles Myer conglomerate, and following the latest deal which will distribute the Myer scrip to its shareholders, the largest beneficiary is Lew’s Century Plaza private company.

Lew will emerge as Myer’s largest shareholder – replacing Premier Investments which currently is Myer’s largest investor – with the retail billionaire set to command a 26.8 per cent personal stake in Myer.

Former Qantas executive Olivia Wirth was appointed Myer executive chairwoman last month

His return to Myer’s board as a director will be carried out alongside him retaining his position as chairman at Premier.

At the AGM, Oliva Wirth, Myer executive chair, made a case for the acquisition of Apparel Brands saying the deal would be “transformational” for Myer.

“We can fast track our strategic priorities by leveraging our complementary strengths to create one of the leading retail platforms across Australia and New Zealand. The strategic and financial rationale of this transaction is compelling,” said Wirth.

“With a combined store network of 783 stores and more than 17,300 team members, the combined Myer Group also creates the opportunity to leverage Myer’s market-leading Myer One loyalty program and e-commerce platform across an enlarged and engaged customer base.

“Apparel brands’ customer base addresses key target customer demographics for Myer and its brands, expands Myer’s exclusive and private-label portfolio and strengthens our brand management capabilities.”

 

At the AGM, Wirth did acknowledge inflationary cost pressures, among other factors, that were continuing to make market conditions tougher. But she noted that trading through the Black Friday period was encouraging.

“Whilst the importance of Black Friday in the retail calendar grows each year – starting earlier and featuring greater sales activity – Christmas remains a very important trading period, and a material determinant of our first-half result,” she told shareholders.

Wirth said Myer was taking immediate steps to improve the performance of its fashion brands Sass & Bide, Marcs and David Lawrence. This would include resetting Sass & Bide as a concession and online model, closing unprofitable, stand-alone retail stores, and restructuring Sass & Bide’s support operations to remove duplication with Myer Group functions, reported The Australian.

Lew did not ask any questions at the AGM and left at the end of it. On Friday, Premier Investments will hold its AGM.