Inside Solomon Lew’s dramatic shake-up

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Inside Solomon Lew’s dramatic shake-up
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The shock departure of Premier boss Richard Murray has set off a chain reaction inside Solomon Lew’s retail empire.

One of Australia’s most promising corporate bromances is over, with Richard Murray departing as chief executive of Solomon Lew’s Premier Investments,But the shock departure could be just the start of a period of dramatic change for Lew’s empire, with the billionaire considering splitting Premier into four separate companies by demerging sleepwear chain Peter Alexander, kids’ stationary shop Smiggle and Premier’s remaining retail brands, including Just Jeans, Portman and Jaqcui-E.

Chanticleer understands that while there are no personal issues between the notoriously hands-on Lew and Murray, the fit between Murray and Premier just hasn’t quite worked out as all parties hoped.

Macquarie, for example, puts a valuation of $1.2 billion on Peter Alexander and $559 million valuation on Smiggle, and a $248 million valuation on the remaining retail business. While UBS and Lew would no doubt have a different view on value, those numbers suggest the case for a spin-off would be strongest with Peter Alexander.No deadline has been set for the deliberations on the strategic review.

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