Retail magnate Solomon Lew is preparing a Myer leadership coup and will call a shareholder meeting to try and depose board members.
Major shareholder Premier Investments, of which Mr Lew is chairman, on Friday said it was talking to other shareholders about forming a new Myer board which would improve earnings.
Most of these new board members would be independent of Premier.
An extraordinary general meeting is planned.
Mr Lew has been critical of Myer's performance in recent years and has repeatedly called for board members to resign.
These members include acting chair JoAnne Stephenson, David Whittle and Jacquie Naylor.
A spokesman for Myer declined to comment on the latest Premier missive.
Premier this week increased its stake in the department store business from about 10 per cent to 15.77 per cent.
Myer has had a troubled recent history. The company last year posted a full-year loss of $172 million.
Then-chair Garry Hounsell resigned and cited lack of support from major shareholders.
Myer fared better in March when surging online sales helped a first-half net profit gain of 76.3 per cent.
Meanwhile, Premier has performed particularly well during the pandemic.
Sales at its retail chains including Peter Alexander, Just Jeans and Smiggle have skyrocketed.
The company last month said full-year retail earnings were likely to be higher by 90 per cent.
Myer shares were higher by 2.3 per cent to 44 cents at 1500 AEST, while Premier Investments shares were lower by 2.32 per cent to $26.94.
