“We’ve investigated into our people and culture department, whereby people were being bullied, sexual harassment, etc, that was never reported; interference by the CEO to that department, and there’s a long list of situations,” he said.
“That’s why we’re very, very particular in the choice of the CEO going forward.”
Other issues being investigated include allegations of “tampering with company product that needed to be returned”, and potential instances of bribery.
“I’m appalled that this has been going on for some years and that I never knew about it,” said Lew.
“I think that if you ask me whether those practices are going on today, I’m going to say no.”
Billionaire businessman Solomon Lew.Credit: Eamon Gallagher
Some employees who complained about alleged bullying or sexual harassment have resigned, Lew said. He declined to confirm whether any other executives had been terminated for this alleged conduct.
“There are people that were dragged into this mob, as such, but obviously over a period of time, quite a few people are no longer with the company.”
Cheston’s new employer, jewellery empire Lovisa, owned by rival retailer Brett Blundy, was contacted for comment.
New CEO tasked with global expansion
The next chief executive of Smiggle is likely to be an international hire tasked to grow the brand across the globe, as the youth stationery company’s sales declined without a permanent chief executive at the helm.
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Smiggle’s 10.7 per cent sales decline offset the strong 7.7 per cent growth for Peter Alexander, resulting in an 0.9 per cent uptick in total sales for parent company Premier Investments’ continuing operations.
Lew has blamed cost-of-living pressures and said he was confident it would return to growth.
“A new appointment is all about our international growth … we think that that’s where the big growth can come from in the future,” Lew told investors.
“We’ve looked within Australia, but at this point in time, we haven’t found the right person,” he said. “We’ve come very close, but we just haven’t been able to convince ourselves that it’s the right appointment.”
Cheston was sacked in late November for what the company said was “serious misconduct and a serious breach of his employment terms”. Cheston denies the allegations and has joined rival retailer Lovisa as global chief executive.
Smiggle performed badly in the 2025 financial year.Credit: Adam McLean
Meanwhile, Peter Alexander had its strongest year ever, with sales rising 7.7 per cent to $548 million as customers purchased sleepwear for gifts. Six new stores opened during the year, with a further nine relocating or refurbished. Three stores in Britain opened in November 2024.
Premier has been slow to roll out new loyalty programs compared with its retail peers. This week alone, The Iconic launched a new loyalty program, Myer and Virgin Australia expanded their partnership, and David Jones announced a revamped scheme. Peter Alexander will launch its program, Peter’s Dreamers, next month, with Smiggle’s to come next year.
Group profits rose 31.1 per cent to $338.2 million, due in part to the sale of Apparel Brands (Jay Jays, Just Jeans, Dotti, Portmans and Jacqui E) to Myer.
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Premier Investments’ share price was up by 0.5 per cent at 11am. The company has announced a final fully franked dividend of 50¢ a share.
E-commerce now makes up 22.9 per cent of total sales, reflecting a broader retail trend of increased online shopping.
“From working through a robust due diligence process with Myer, to completing the sale of the five-brand Apparel Brands business to Myer on January 26, 2025, to emerging as a high-margin two-brand business across multiple countries – this year has been both challenging and exciting,” Lew said.
The $3.3 billion ASX-listed business will continue to grow its footprint across different cities and countries over the next few years, he said.
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