But let’s provide a little context.
When Cheston was sacked, he was already serving notice after resigning to join Lew’s billionaire rival, Brett Blundy.
Cheston was to run Blundy’s ASX-listed jewellery chain Lovisa, a role that he started in June. And it was the latest win for Blundy, who had also signed up former David Jones boss Mark McInnes after the latter left Lew’s retail empire.
Solomon Lew (left) with John Cheston in 2015. Lew sacked Cheston as Smiggle boss last year.Credit: Palani Mohan
Cheston’s decision to leave in June last year had already derailed the Smiggle spin-off, so his sacking in September of that year was no real loss for Lew. So why is this suddenly an issue, one year after Cheston was dumped and stripped of millions in stock options?
It may have something to do with how sales are holding up for Premier’s two premium brands. While the pyjama game at Peter Alexander is doing well, it may not be a coincidence that Lew is struggling with Smiggle – the business that is meant to be the jewel in Lew’s crown.
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A year since Cheston left, Smiggle remains both leaderless and rudderless with sales dropping last year by double digits “reflecting continued cost-of-living pressures across global markets”, according to Premier.
If Cheston’s departure narrowed the window for a separate public listing of the Smiggle business, competition from the likes of Temu – with its gamified sales platforms and direct-from-the-factory prices – may have now slammed it shut.
While not a direct reflection of Smiggle’s target market, a UBS retail survey in March reported that more than 20 per cent of shoppers plan to buy from Temu this year.
Indeed, Cheston may have seen the writing on the wall and decided junk jewellery was a better bet.
Via his lawyers, Cheston has said this latest Lew “rant” was simply untrue.
“The truth is Mr Cheston declined Premier’s offer to lead a separately listed Smiggle business and instead resigned to accept a CEO role for another publicly listed retail company. That decision appears to be what Premier is unable to move past,” Cheston’s lawyers said.
“Mr Cheston has moved on, and Premier should do the same.”
We can only assume that Blundy – who controls ASX-listed Lovisa – agrees with this assessment, as the company has displayed zero interest in addressing this issue.
And where does this leave 80-year-old Lew? Patience may yet be a virtue as he looks for the right chief executive to push Smiggle’s global expansion, and hopes that the kids’ stationery group has not missed its moment.
But holding a grudge against Cheston is not going to help Premier Investments one bit.
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