Myer tumbles off the ASX200 index

Myer tumbles off the ASX200 index

Struggling retailer Myer (ASX: MYR) has fallen off the benchmark ASX200 index as its share price continues to fall.

Myer, Australian Agricultural Company, and HT&E (formerly known as APN News and Media) have all been dropped from the index which compiles the top companies on the Australian Securities Exchange.

 

They were replaces by movers and shakers like infant formula supplier Bellamy's, cloud accounting software firm Xero, staff management company Smartgroup and miner Ausdrill.

These companies will be included in the index in a rebalance that takes effect from March 19.

This latest plunge is the latest in a series of misfortune for what was once Australia's premier department store.

In February, the company lost its chief executive Richard Umbers who stepped away from the sinking ship that is Myer.

Umbers was replaced in the interim by chairman Garry Hounsell, who said the board can no longer tolerate underperformance from the company and that a leadership change was needed to reshape the company's future.

"We are impatient for a turnaround in the company's performance and the board has determined that it is in the interests of all shareholders for there to be a fresh approach to drive our future direction," says Hounsell.

Umbers departure followed disappointing first half results which showed Myer was a company that continued to flounder in a challenging retail environment.

Total sales in the first half of FY18 were down 3.6 per cent to $1.7 billion for the department store chain.

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