Bernie Brookes lacked the forward thinking and modern arsenal required to win in the 21st centuries dynamic retail space. Senior staff and department heads had been awaiting his exit and have had their wishes finally answered. But incoming CEO Richard Umbers also lacks the certain charisma associated and required by the Fashion and Retail giant.
Richard Umbers however is a numbers man and can hopefully steer the company on track as he has a vast supply and information background. Maybe this will lead Myer away from Fashion and towards a more sustainable business niche.
In addition to losing the CEO and other design and department heads – Myer is now facing a lawsuit from investors who were led astray by early profit forecasts. Since the profit forecast was far worse than expected investors are suing Myer for lost revenue and the provision of false information. Myer will fight this litigation according to officials at the retailer.
Stocks are currently trading around the $1.30 mark from a high of $1.90 just towards the end of February.
We are awaiting major announcements and will not purchase any stock above $1.25 as simply think the worst is yet to come and more there is more negative news ahead.