2 hours ago
2
Billionaire retailer Solomon Lew’s internal investigation into former Smiggle boss John Cheston, who was sacked over allegations of serious misconduct, has expanded beyond Australia.
Cheston had resigned from his job as Smiggle managing director to lead jewellery retailer Lovisa, owned by Lew rival Brett Blundy, and he was serving out his 12-month notice period before it was abruptly terminated in November 2024 by allegations of “serious breach of his employment terms”.
“The lawyers have instructed me not to comment, but it’s taking longer because it’s now an international investigation,” Lew told reporters on Friday morning, declining to share further details.
The law firm representing Cheston was contacted for comment.
Cheston has always denied the allegations, describing them as “false, vindictive and profoundly disappointing”. He said he had been “denied procedural fairness”.
Last year, a spokesperson for Cheston called the allegations “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.
“Mr Cheston has moved on and Premier should do the same.”
Lew made the comments as he unveiled Premier’s half-year results for the 2026 financial year, where he announced interim chief operating officer Georgia Chew had been promoted to be Smiggle’s new managing director. She has been with the business for 14 years.
Smiggle’s sales declined 10.7 per cent to $140.5 million during the half-year period after closing 9 per cent of stores, most of which are in Britain. The company lost its focus by skewing towards younger customers, and it is returning to its core base of primary school-age children.
“In the management some time ago, we were starting to lose sight of that six to 12 [year old] customer and we were concentrating heavily on the preschool and kinder,” Lew told this masthead.
“I’m not going to name the people, but that management, those decision makers, are no longer there. That’s the best I can do.”
The appointment of Chew ends a global search to replace Cheston. Lew said she had “totally revamped the operation and energised the people at no extra cost”.
“We never had an online business, and today it represents 23 per cent of our business, highly profitable and big turnover,” the 80-year-old businessman said of Chew. “She’s a skilled operator and very structured in the way that she works with her people.”
Smiggle intends to expand its range of beauty accessories, like lip gloss charms on a backpack, as teen demand for beauty climbs.
“We realised what had transpired, and we’re now back onto designing a different product, different styles, et cetera, for the six to 12 category. They’re different to the tiny tots, totally different,” said Lew. “That’s when we started our business, and that’s where we need to focus now.”
Premier Investments also operates pyjama chain Peter Alexander, which posted a 4.9 per cent sales increase to $312.3 million, boosted by four new stores that opened or relocated and a new loyalty program, Peter’s Dreamers, which is driving more frequent and bigger purchases compared to non-members.
Interest rate rises don’t appear to have dented shoppers’ appetite for Peter Alexander, said the Premier executive chairman.
“It’s a wanted product; it’s go-to for gift giving. There’s nothing like it. We’re expanding the product ranges continuously,” Lew said.
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.
