Woolworths chairman Simon Susman publicly expressed full confidence in his CEO Ian Moir this week — but industry insiders say Moir's misadventures at David Jones must be causing deep unhappiness. Woolworths admitted on Thursday that it had overpaid by nearly 33% when it bought David Jones for A$2.1-billion (about R21.4-billion) four years ago. It announced a R7-billion impairment due to "the cyclical downturn and structural changes" affecting Australia's retail sector. So far this year, Woolworths' share price has fallen 6.48%. It closed at R67.10 on Friday, 40% off its November 2015 peak. "I'm sure Simon at some stage is going to get a bit impatient," said one industry insider, who did not want to be named. "It must have been [Moir] that motivated the whole transaction, convincing the board and [Susman] that this is a great buy." Moir, who replaced Susman as CEO in 2010, ended the retailer's Nigerian expansion three years later and focused on building its Australian presence instea...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.