Smiggle boss John Cheston fired for ‘serious misconduct’
Sign up now: Get ST's newsletters delivered to your inbox
Smiggle has exploded in popularity since starting out as a single shop two decades ago and now has hundreds of stores worldwide.
PHOTO: SMIGGLE/INSTAGRAM
Follow topic:
SYDNEY - The managing director of Australia’s wildly popular back-to-school accessoriser Smiggle, Mr John Cheston, has been fired for “serious misconduct”, the brand’s owner said.
It comes just three months after the long-time executive announced he was leaving to work for Australian jewellery retailer Lovisa Holdings, the Australian Financial Review (AFR) noted.
Mr Cheston was in “serious breach of his employment terms, and on that basis, his employment has been terminated today”, Just Group said in a one-sentence statement on Sept 9, without elaborating.
Just Group, wholly owned by Premier Investments, runs a stable of brands including sleepwear maker Peter Alexander, Just Jeans and apparel label Portmans.
Anything-for-school business Smiggle has exploded in popularity since starting out as a single shop two decades ago, and now has hundreds of stores worldwide, with its water bottles – festooned with bright colours and patterns – especially prized among many Australian children.
Mr Cheston is due to become chief executive officer of rival retailer Lovisa next June. His sudden departure comes as Premier considers spinning off Smiggle and Peter Alexander, and has also been weighing a merger of its apparel brands business with local department store operator Myer.
AFR said Mr Cheston’s defection to ASX-listed Lovisa has upset Premier’s plans to spin off and list Smiggle.
A statement issued by Mr Cheston’s law firm, Giles George, said he resigned from his employment with Just Group on June 3, providing 12 months’ notice before his move to Lovisa.
“The allegations of misconduct are categorically denied by Mr Cheston,” the statement read.
In a separate announcement on Sept 9, Premier said its retailing businesses posted sales of A$1.6 billion (S$1.4 billion) for the year to July 27, slightly below market consensus of A$1.63 billion.
The update comes as internal confidential documents were leaked that were meant to be damaging to Premier and Myer, in which Premier Investments is the biggest shareholder, said AFR.
Premier shares dropped as much as 8.1 per cent before closing down 3.9 per cent at A$33.85 on Sept 9. BLOOMBERG
