Australia's Myer Holdings Ltd <MYR.AX> said on Thursday its chairman, Garry Hounsell, will retire after failing to get the support of the department store operator's two biggest shareholders, sending its shares more than 6% lower.
Hounsell has been a board member of the Australian high-street retailer for three years, presiding over the upheaval caused by the coronavirus pandemic this year and the company's turnaround strategy after years of dismal earnings.
Over that time, Myer's management has come under intense pressure from its top shareholder, retail veteran Solomon Lew's Premier Investments <PMV.AX>.
"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," Hounsell said in a statement ahead of Myer's annual shareholder meeting.
The company's second-biggest investor is Wilson Asset Management, with a 7.8% stake, according to Refinitiv data.
Premier Investments said it is looking at representation on Myer's new 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," the Solomon Lew company added in a statement.
Independent director JoAnne Stephenson would stand in for Hounsell as acting chairwoman until a permanent replacement could be found, Myer said.
Shares fell 6.3% in early trade, their biggest drop in since Sept. 10. The broader market <.AXJO> was 1.6% lower.
(Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Himani Sarkar, Stephen Coates and Gerry Doyle)
