Premier Investments' billionaire chair Solomon Lew has made allegations against former senior executives, including the sacked boss of Smiggle, accusing them of being drunk at work, bribery and gambling. 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.
Lew's Premier Investments terminated John Cheston as Smiggle boss last September for alleged "serious misconduct and a serious breach of his employment terms". But the scope of the inquiry has now broadened beyond domestic concerns. According to recent reporting, the investigation into workplace conduct at the youth stationery brand has expanded internationally, suggesting that issues may have extended across Smiggle's global operations.
"I'm appalled that this has been going on for some years and that I never knew about it," Mr Lew told media on a call as he unveiled Premier's full-year results on Thursday. The company clawed back $5.2 million in payments made to Cheston, who is now global chief executive of jewellery chain Lovisa.
Cheston's legal team has rejected these claims. "Mr Cheston resigned almost 18 months ago. 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. That decision appears to be what Premier is unable to move past."
The allegations come as Smiggle navigates significant trading pressures. Sales for the kids' stationery network fell 10.7 per cent to $140.5 million, after store numbers were reduced across the country as Premier continues to reset the business. The company is seeking an international hire to replace Cheston. "At this point in time, we haven't been able to identify or find somebody within Australia that has the international experience," Lew said.
Analysts at investment bank Macquarie said the investigation into the alleged misconduct at Smiggle may "make attracting new leadership more difficult" over the 2026 financial year. The brand must rebuild trust while competing in a tough retail market.
Lew revealed that other senior executives were part of the alleged behaviour and they too are no longer with the company. The investigation remains ongoing, though specific details about the international scope have not been disclosed publicly.