Myer Holdings Ltd (ASX: MYR) yesterday announced a management restructure which the company hopes will support its turnaround strategy. Here are the key highlights of the announcement:
- The chief digital and data officer Mark Cripsey was promoted to the newly created role of Chief Operating Officer.
- The current Chief Financial Officer (CFO) stepped down and a new CFO, Nigel Chadwick, has been appointed.
- As a result of the consolidation of the company's supporting operations and a number of related staff departures, another floor space will be vacated to bring the total vacated area to 4.5 floors which is over 40% of the area.
Myer shares were down 1.53% to $0.64 yesterday.
I think the changes at Myer are welcome. The company is over two years into their five-year turnaround and so far there has not been much improvement. Something had to change and Myer investors will hope that the new management can effectively implement the company's strategy.
It is a tough ask and the new team will have to settle in quite quickly. The retail environment is currently facing multiple headwinds with competition from online retailers, slow wage growth, and a highly indebted consumer base all conspiring to drive retail margins down.
I'm quite sceptical about whether the situation at Myer can be turned around. Perhaps a takeover by a larger player in the industry such as Premier Investments Limited (ASX: PMV) would be the solution. Premier owns top businesses Smiggle and Peter Alexander and has an experienced team led by top businessman Solomon Lew. That strategy has already been applied at Billabong International Limited (ASX: BBG) which entered into an arrangement with American firm Boardriders, Inc to sell the company for approximately $198 million.
Boardriders is controlled by fund manager Oaktree Capital Management which is one of the largest distressed investors in the world.
