Premier Investments Slumps on Surprise McInnes Retirement

Premier Investments surprised the market yesterday by revealing the retirement of executive director and retail chief executive Mark McInnes.

He will be leaving his roles after serving a 12-month notice period.

Investors didn’t like the news and sold off Premier shares which fell 2.3% to $23.75, a few days after hitting an all time high of $25.77 in the wake of a bullish first half trading update (The company balances on January 25 and will report its interim figures in March)

Premier chairman and major shareholder, Solomon Lew said Mr McInnes, who is on annual leave until February 1, had indicated a desire to spend more time with his family.

“After a decade in the CEO role, I understand and fully support Mark’s decision to leave for personal reasons,” Mr Lew told the ASX on Monday.

Mr McInnes moved to premier after leaving David Jones after sexual harassment claims.

In addition, Premier has the option to restrain Mr McInnes from engaging in specified retail-related activities for a further two-year period.

“At this time, it is business as usual,” Mr Lew said.

“The board has commenced a process to ensure an orderly transition, including a comprehensive search.”

The Just Jeans, Smiggle, and Peter Alexander owner last week said it had nearly doubled earnings in the first half of its financial year after a huge uptick in online sales during the pandemic.

 

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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