Myer vows to shrink its board and lower charges after investor strain

Myer has moved quickly to appease fund manager Geoff Wilson, who called on the retailer to shrink its board and reduce directors fees.

The strikes come after strain from Myer’s second-largest shareholder Geoff Wilson, chairman of Wilson Asset Management, who despatched a letter to Mr Hounsell on Tuesday requesting modifications on the board degree.

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In a response to Mr Wilson’s letter, Mr Hounsell stated the corporate had been contemplating the scale of its board for “some time” and that Myer was “extremely mindful” of decreasing the board’s measurement and costs to replicate the scale of the enterprise.

“Today’s announcement of a smaller board reflects the size of the business, our ongoing focus on costs and the current operating environment,” Mr Hounsell stated.

The chairman additionally responded to quite a lot of different queries raised by Mr Wilson in his missive on Tuesday, together with Myer’s relationships with suppliers.

Retail billionaire Solomon Lew, who’s Myer’s largest shareholder and a fierce opponent of its administration, alleged in a letter earlier this month that suppliers had been “hesitant to do business” with the corporate, a declare Mr Wilson requested the board to elucidate.

Mr Hounsell stated the corporate wouldn’t remark particularly on its relationship with suppliers, however stated the enterprise had retained the help of its merchandise provider base and had continued to pay suppliers according to their current contract phrases or higher.

Myer has moved shortly to appease fund supervisor Geoff Wilson, who known as on the retailer to shrink its board and cut back administrators charges.Credit:James Alcock

However, the chairman famous the retailer had been often adjusting its product vary throughout COVID-19, modifications which can have resulted in suppliers being lower.

No key suppliers had been misplaced on account of an incapability to obtain commerce credit score insurance coverage, Mr Hounsell stated.

The chairman promised shareholders Myer would return to paying dividends and distributing its stash of franking credit “when it is prudent to do so”.

“Finally, Myer takes this chance to thank Wilson Asset Management for its ongoing help of the corporate throughout what’s, and we agree with the remark in your letter; ‘a difficult and uncertain time’,” Mr Hounsell stated.

Tensions between Myer’s administration and its largest shareholders have been constructing in current weeks following the corporate’s $172 million loss reported in early September.

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