The billionaire chairman of Premier Investments has made a series of jaw-dropping allegations involving the Smiggle boss who was fired for alleged serious misconduct a year ago.
Solomon Lew said that John Cheston – now the CEO of jewellery chain Lovisa – encouraged a culture of drinking and gambling with staff and returning to work intoxicated, saying there was an ongoing investigation.
Rebekah Giles, Mr Cheston’s legal representative, denied the allegations and suggested they were motivated by bitterness that he had left Premier.
“To the extent that this latest rant is about Mr Cheston, it is simply untrue,” she said in a statement.
Lovisa has also been approached for comment.
Premier Investment’s Just Group fired Mr Cheston in September 2024, three months after he gave his required year-long notice that he was leaving to head Lovisa.
Premier’s Just Group subsidiary had alleged “serious misconduct” on the part of Mr Cheston but was not more specific until Thursday, when Mr Lew detailed the allegations during a call with reporters as Premier announced its full-year earnings.
“People were being paid to be at work, doing other things, and not being at work, and being absent from their jobs, and spending time being intoxicated and gambling with staff in the organisation,” Mr Lew said.
This happened during office hours, and head office staff would return to work intoxicated, Mr Lew alleged.
He suggested “people were being bullied, sexual harassment, etcetera, that was never reported, interference by the CEO to that (human resources) department, and there’s a long list of situations.”
Mr Lew said he was “appalled that this was going on for some years and I never knew about it”.
Pressed on whether anyone other than Mr Cheston had been fired for alleged misconduct, Mr Lew said he wasn’t certain but believed other people had left the company.
“There are people who were dragged into this mob, obviously, over a period of time, quite a few people who are no longer with the company,” he said.
“If you were to ask me whether those practices are going on today, I’m going to say no.”
Mr Lew said that Premier had not paid Mr Cheston any further renumeration after firing him, clawing back $5.2 million.
Ms Giles said Mr Cheston resigned 18 months ago and put the company behind him.
“The truth is Mr Cheston declined Premier’s offer to lead a separately listed Smiggle business and instead resigned to accept a CEO role for another publicly-listed retail company,” she said.
“That decision appears to be what Premier is unable to move past.
“Mr Cheston has moved on and Premier should do the same.”
A back-to-school stationery chain, Smiggle has 296 stores, about half of which are in Australia, and about 80 head office staff.
Mr Lew said Smiggle still didn’t have a permanent CEO because Premier was being “very very particular” about finding a replacement.
Mr Lew’s comments largely overshadowed Premier’s 2024/25 earnings results.
Premier Investments said it made $831.3 million in revenue in the 52 weeks to July 26, up 1.2 per cent from a year ago.
Sleepwear chain Peter Alexander’s 2024/25 sales were a record $548 million, up 7.7 per cent from a year ago, with sales around Mother’s Day and Father’s Day particularly strong.
Premier said its statutory profit was up 31.1 per cent to $338.2 million, when including the divestment of its clothing stores Just Jeans, Jay Jays, Portmans, Dotti and Jacqui E to Myer in January.
Its underlying profit from continuing operations – excluding the apparel brands divestment and costs associated with Peter Alexander’s entry into the UK market – was down 14.9 per cent to $220.3 million.
National Gambling Helpline 1800 858 858
1800 RESPECT (1800 737 732)
National Sexual Abuse and Redress Support Service 1800 211 028
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