Smiggle probe into misconduct allegations ‘an overhang for sentiment’ at Premier Investments

The probe into the sacked Smiggle boss — which has uncovered stunning allegations of former executives being drunk during work hours, bullying, sexual harassment and bribery — may remain “an overhang for sentiment” in the business.

Analysts at investment bank Macquarie said the investigation into the alleged misconduct at Smiggle may also “make attracting new leadership more difficult” over the 2026 financial year.

Retail magnate Solomon Lew’s Premier Investments, the operator of Smiggle and sleepwear brand Peter Alexander, has been conducting a global search to replace John Cheston after he was sacked as Smiggle boss in last September for alleged “serious misconduct and a serious breach of his employment terms”.

No further details for his exit were given at the time.

But Mr Lew, during a media call after Premier unveiled its full-year result on Thursday, made a string of sensational allegations against a “mob” of former senior executives, including Mr Cheston. They are no longer with the company.

Mr Lew said an investigation uncovered alleged behaviours such as “being absent from their jobs and spending time being intoxicated and gambling with staff in the organisation”, bribery, bullying, sexual harassment and tampering with company products.

The investigation is ongoing.

Not all of the claims were made towards Mr Cheston and The Nightly does not suggest there is any basis for any of them. Mr Cheston has always denied the allegations against him.

Premier shares closed at $20.34 on Thursday. The stock closed 3.5 per cent lower to $19.62 on Friday.

Mr Cheston’s sacking came just three months after he was poached by rival billionaire retail magnate Brett Blundy to run his global jewellery chain Lovisa.

In a statement to The Nightly on Thursday, a spokeswoman for Mr Cheston claimed Mr Lew was still bitter over Mr Cheston’s decision to jump ship from Smiggle to Lovisa.

Macquarie analysts on Friday said “the probe into prior misconduct at Smiggle may remain an overhang for sentiment in the business, and make attracting new leadership more difficult over FY26”.

“We look for an appointment that can oversee offshore expansion, but also manage the Australian product range and strategy to be more ‘on-trend,” they said.

The analysts said they “do not yet have full confidence” Smiggle and Peter Alexander UK have reached their “bottom” and would begin to contribute to earnings growth.

Smiggle’s near 11 per cent sales decline offset the strong 7.7 per cent growth for Peter Alexander in the 2025 financial year.

Results from the three Peter Alexander UK stores, which opened last year, were not disclosed.