David Jones’ Ltd
(ASX:DJS) biggest shareholder will meet with management this week to discuss the sudden departure of former CEO Mark McInnes and the store's plans to defend the brand. Ausbil Dexia chief Paul Xiradis has told the Australian newspaper that he was surprised by the nature of Mr McInnes’s resignation and would like to have a better understanding of the circumstances and the impact on the department store’s image. Ausbil holds just over 41 million shares in David Jones, representing 8.26% of issued capital. Its holding is valued at $186 million. Meanwhile, Credit Suisse has downgraded the upmarket retailer to an underperform position and reduced its stock valuation from $5.30 to $4.50, citing reputational risk and team instability. Mr McInnes resigned last week after admitting inappropriate behaviour towards a femal staff member at two company functions. Former head of operations for the company, Paul Zahra, has replaced Mr McInnes as chief executive. For the 12 months to July 30, 2009, David Jones booked a $156.5 million profit.
