Myer chairman Garry Hounsell has resigned from his position, ahead of the business' AGM which will take place this afternoon.
Speaking on the decision, Hounsell said that it was clear the business' two major shareholders did not support him.
"Ahead of today’s Myer AGM, it has become apparent that Myer’s two largest shareholders are not supporting my re-election and I will not allow my ongoing tenure as chairman to be a distraction to the hard work of the executive team," he said.
"In my three years as Chairman, we have pursued a clear strategy that has strengthened the Myer business, allowing it to come through the severe disruption of the COVID-19 pandemic lockdowns to be well positioned as we head into the crucial end-of-year trading period.
"Throughout my tenure, we have been resolutely focused on delivering for customers and improving the performance of the business – and we have been determined not to allow anything to distract us from that mission," he said.
JoAnne Stephenson has been appointed as acting chairman while a global search is undertaken to find a replacement.
However, major shareholder Premier Investments has called the resignation of Hounsell a "green shoot" shareholders have long been waiting for and does not support the global search for a new chairman.
"Mr Hounsell’s ousting signals to the entire Board that their time is up," Premier said in a statement.
"In the interests of all shareholders, we expect the remaining Myer directors will now indicate their intention to step aside in an orderly manner or face an Extraordinary General Meeting at which they will be certainly dismissed.
"In Premier’s view, a global search for a new Chairman is a waste of shareholders’ time and money," the business said.
The solution to Myer's woes is the appointment of a new independent board, Premier said.
"Myer is an Australian icon and it requires a Board with proven Australian retail credentials and commercial experience, including key skills in property, information technology, e-commerce and logistics.
"For the sake of all of Myer’s dedicated employees, its many hard working suppliers, its loyal but frustrated customers, and of course its long-suffering shareholders, the company needs to be restored to health by installing a new, independent Board.
"Premier intends to continue to consult with other major shareholders and together we will reconstitute the Myer Board with a majority of independent Directors led by an independent Chairperson.
"Premier will seek to have representation on the new Myer Board in line with its holding," Premier said.