Biggest shareholder in Australia's Myer seeking support to oust the board

[SYDNEY] The biggest shareholder in Australia's Myer Holdings said he will formally request a meeting to oust the entire board within weeks, accusing the department store firm of lying to investors about the success of its turnaround plan.

Australian retail veteran Solomon Lew said in a letter to Myer shareholders that the company's Feb 14 removal of its CEO and promotion of its chairman to executive chairman could not help the company revive its declining sales.

"Myer has a discredited chairman for a CEO, a failed board, a dead strategy, declining sales and profits, an artificially-inflated balance sheet and massive liabilities," wrote Mr Lew, whose retail investment company owns 10.8 per cent of Myer, in the letter.

A Myer spokesman was not immediately available for comment.

Mr Lew said the company he controls, Premier Investments, had received Myer's share register and would ask shareholders over the coming weeks to support removing the board at an extraordinary general meeting.

Premier would send a formal notice of meeting if it gets sufficient investor support. It would need support from more than 50 per cent of Myer's shareholders to remove the board.

REUTERS