TRADING in department store chain Myer’s shares has been paused following controversy about its continuous disclosure obligations.
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“The company is well aware of its continuous disclosure obligations and confirms it is in compliance with them,” the retailer said in response to an article in today’s Australian Financial Review.
The article suggested a disclosure threshold might have been reached by Myer's decision to stop providing quarterly sales updates.
The Australian Stock Exchange issued a market announcement this morning advising of a pause in trading Myer securities pending a further announcement.
Myer announced in May it would no longer provide quarterly sales updates, much like Wesfarmers.
But the lack of data has fuelled speculation over the company’s performance ahead of its annual general meeting on November 30.
Myer's sales fell 3.2 per cent in the year to July 28, slashing underlying profit by 52 per cent to $32.5 million before $541.2 million in costs and significant items.
Second-half sales were down 2.4 per cent on a same-store basis, which Myer said showed an improvement in performance.
Last month billionaire investor Solomon Lew again wrote to Myer shareholders urging them to trigger a spill of the company's board at the November 30 annual general meeting.
The retail veteran has been a constant critic of Myer's board since buying a stake long perceived as a foothold for a takeover.
Myer shares have fallen to 45 cents, from $1.19 the same time last year.
- with Australian Associated Press
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