Premier Investments has reignited its war with department store Myer, exercising its right to call an extraordinary general meeting.
Premier has made it clear that the main issue behind the decision is the recent election Myer's new board members. In a statement from the company, it outlined its stance on the current situation.
"Premier strongly believes that a new Myer Board with relevant expertise and experience in retail, property and business is required as a matter of urgency.
"It is not in the best interests of shareholders that the current Myer Board be allowed to preside over another year of declining sales, eroding profits and further share price deterioration before urgently needed change is introduced at Board level.
"It should now be abundantly clear to all stakeholders in the company that a significant circuit-breaker is needed for the company to have any sustainable future.
"Myer shareholders, staff, suppliers, landlords and customers deserve a strong and experienced Board to lead the business through the current significant challenges it faces.
"At Myer’s 2017 AGM there was a significant protest vote against the board of Myer, resulting in a first strike on the remuneration report."
In the same statement from Premier, it indicated that a second strike is likely to occur.
"In the context of Myer’s current performance, it is likely that Myer’s 2018 AGM will see a second strike against the Myer Board and, consequentially, a spill of the entire Board.
"Myer’s sales and profit downgrade announcement during December 2017 demonstrated a continued disappointing downward trajectory.
"It is clear, consistent with widespread market expectations, that Myer will need to write down significant amounts of intangibles on its balance sheet at, or before, the upcoming interim results announcement.
Premier has already put forward two directors to represent it on a new Myer Board, as well as an additional independent director.
The company has stated that, over the coming weeks, it will caucus with other Myer shareholders to determine appropriate independent candidates to be put to all shareholders for voting at the proposed EGM.
It has also requested a current copy of the Myer shareholder register to facilitate engagement with Myer shareholders regarding an EGM.