Myer Crisis Meeting
Oh it is D-Day, absolutely Karl. It is whether the Myer (ASX;MYR) board can survive.
In fact, the new chairman going in there, Gary Hounsell, has not even spent a day as a chairman and already Solomon Lew, who has got 10.8 percent of the shares is going to vote against him.
Now, my latest feeling talking from the shareholder proxy groups that actually vote on behalf of the big shareholders actually says that the Myer board will survive today but they are on a very very short leash.
The reason for it is Myer has been seen to not be performing so its got real problems in regards to its competitors from overseas plus its online retailing.
The profits were down some $50 million. It lost money in its Topshop venture, Sass and Bide had to write that off completely.
So, right now, Myer is on a very short leash. Its going to close stores, there’s 3 of them closing in the next two years. There’s potentially more stories closed down the track as well.
The Myer Christmas windows are blacked out right now, but even the fact of the matter is that people who are passing by are saying “Where is the money being spent on the windows to get people into stores?”
So, Myer – as I say – are on notice from their shareholders.