Can the Myer Holdings Ltd management restructure revive the share price?

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.

Don’t Buy A SINGLE Stock Until You Read This

While conflict overseas is all media talking-heads seem to mention these days, the billionaire founder of Tesla is losing sleep over what he sees as a far bigger threat.

Elon Musk Warns: This has “vastly more risk than North Korea”

If you missed your opportunity to get in on Google, Microsoft, or Amazon in their early days, don't let it happen again. This emerging technology trend could offer a second chance for anyone who wishes they took part in these millionaire-maker stocks.

Click here to discover more!

Motley Fool contributor Kevin Gandiya has no position in any of the stocks mentioned.

You can follow Kevin on Twitter @KevinGandiya.

The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!