Frasers calls for Accent chairman to resign amid takeover battle

British retail giant Frasers Group has escalated its takeover battle with Accent Group by publicly calling for chairman Lawrence Myers to resign, accusing the Australian retailer’s board of governance failures, poor capital allocation and a lack of accountability.

In an open letter published on its corporate website, Frasers chief financial officer Chris Wootton said Myers’ position had become “untenable” following Accent’s FY26 results and a sharp decline in shareholder support.

“I am compelled to take the unusual but necessary step of writing an open letter urging you to resign from your position as Chairman of Accent Group Limited with immediate effect,” Wootton stated. He added that shareholders “deserve new leadership” and said Myers had adopted a “head in the sand” approach to the business.

The letter follows Accent’s recent FY26 results, which revealed a statutory net loss, a 48.6 million Australian dollar goodwill impairment and increased borrowings. Frasers also criticised the board for maintaining dividend payments while investing in its long-term growth strategy and questioned the assumptions underpinning Accent’s 2030 Strategic Growth Plan.

Frasers became Accent’s largest shareholder in 2024 as part of its strategy to expand Sports Direct across Australia and New Zealand. The companies later signed a 25-year agreement to open up to 100 Sports Direct stores in the region, with Accent also acquiring Frasers’ Australian marketplace MySale.

Relations deteriorated in June when Frasers launched an unsolicited takeover offer of 0.65 Australian dollars per share for the remaining shares in Accent, arguing the retailer’s financial performance and management justified more influence over the business. Accent rejected the bid, saying it undervalued the company and its long-term growth prospects.

The offer period has since been extended until the end of September, while Australia’s Takeovers Panel previously declined to investigate Accent’s recommendation that shareholders reject the proposal after the retailer issued a supplementary target statement addressing concerns.