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A legal investigation into the alleged “serious misconduct” by the former Smiggle managing director John Cheston is now believed to involve other former executives and staff in the company.
This was confirmed by Premier Investments chairman Solomon Lew in a media teleconference on Friday morning this week.
“Obviously, it's a legal matter,” Lew told journalists. “But I can confirm that we still have an ongoing investigation into certain past practices by former executives and others in the company.
“I presume as soon as all the investigations are completed, we will disclose our findings, if appropriate, and if approved by our legal advisors.”
Lew refused to add further comment to the issue other than to say it is a “very serious matter”.
A media report by the Australian Financial Review in late November last year indicated that key allegations include inappropriately communicating with staff and interfering in human resources investigations, at least according to private correspondence from Premier.
Cheston has since denied any wrongdoing.
Following his termination from the lead role of Smiggle, Cheston is expected to take on the CEO position of Lovisa from June 4 this year.
In Lovisa’s FY24 annual report, released on October 22 last year, company chairman Brett Blundy lauded over Cheston's appointment – after Cheston's shock dismissal.
“With a wealth of retail experience and a proven track record of success, John is poised to take Lovisa to even greater heights,” Blundy wrote. “Get ready for a new era of operational excellence, growth, innovation, and excitement under his leadership!”
Cheston is expected to be on a fixed remuneration in his new role of $2,350,000 per annum.
Since the release of its annual report, Lovisa’s following trading updates so far through FY25 do not mention Cheston, including its recent FY25 half year reports.
Alongside Premier’s legal investigation into Cheston and other staff, Lovisa itself is facing its own legal dispute, with a class action lawsuit being lobbed against them earlier this year featuring more than 300 former employees.