Premier Investments has issued a critical response to Myer's letter that claimed the investment company was engaged in a “hostile and obstructive” campaign against the company.
The Premier letter claimed that Myer's response focussed on the personal reputations of Myer chairman Garry Hounsell and Sass & Bide chairman Julie Ann Morrison instead of addressing concerns raised by the company on behalf of Myer shareholders.
Premier outlined nine concerns it claims were not addressed or disputed by the Myer letter including the potential for future write-downs, the risk of Myer breaching its debt covenant, the cancellation of shareholder dividends and the performance of the Sass & Bide brand.
In its letter, Premier said that the Myer board had failed and claimed that the company's shareholders should be looking to remove the current board and have them replaced.
“Myer shareholders can clearly see what is going on here. It's a shame the Myer board still has its eyes wide shut.
“Mr Hounsell told the market he could see the 'green shoots' of Myer's turnaround strategy appearing.
“To data, instead of 'green shoots', all Mr Hounsell has produced is: a share price down 36%; the cancellation of the interim dividend; a market capitalisation reduction of more than $200 million, write down costs of close to a massive $550 million; and current year to date sales down 3.4%.
“The numbers don't lie.”