Myer’s shares have been placed in a trading halt to give the troubled retailer time to fully respond to allegations it has breached its continuous disclosure obligations.
The department store chain said Friday it was “well aware of its continuous disclosure obligations and confirms it is in compliance with them”, but subsequently requested a trading halt until Monday.
The brief statement was in response to an article in Thursday’s Australian Financial Review suggesting that a disclosure threshold may have been reached by Myer’s decision to stop providing quarterly sales updates.
Myer in May announced it would no longer provide quarterly sales updates, a move also taken by Wesfarmers.
But the lack of data has fuelled speculation over its performance ahead of the company’s November 30 annual general meeting.
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 were worth 45 cents at Thursday’s close, down from $1.19 the same time last year.