On the back of global colonisation, Smiggle is being primed for its own stock exchange listing, so the defection of its long-standing chief executive to Lovisa appeared to be a major blow for Lew’s Just Retail group.

Cheston’s poaching was particularly troublesome for the Lew empire given he was credited with a large part of the success of building and expanding Smiggle.

If that was the case, the Lew camp had been playing it down, suggesting there was plenty of time to find Cheston’s replacement.

There had also been rumours swirling around that Cheston had lobbied unsuccessfully to be the head of Just Retail and to take the position of chief executive of Myer, in which Lew’s Premier Investments is the largest shareholder.

Sacking Cheston is a big swing by the Lew camp and will have serious ramifications for his ability to lead Lovisa, which is an ASX-listed company.

The allegation of any kind of “serious misconduct” would surely need to be contested by Cheston before taking up the role at Lovisa.

Lovisa had undertaken to pay Cheston $2.35 million in base pay with the opportunity to make the same amount in short-term incentives each year.

Meanwhile, the fingerprints of former Lew lieutenant Mark McInnes might be discernible in a forensic analysis.

He retired from the Lew empire a few years ago, and after his golden handcuffs were unlocked, he was lured to Blundy’s sprawling investment outfit BBRC as global head of retail and consumer.

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McInnes left Just Retail after a decade. The simpatico relationship between Lew and McInnes had spawned one of the most successful retail stories in history.

Ironically, Lew scooped up McInnes following a sexual harassment claim that cut short his career as head of David Jones. McInnes denied the allegations, and a civil matter was settled outside of court.

It was a punt for Lew that paid off in spades.

The sacking of Cheston overshadowed the less headline-grabbing news from Just Retail – an update on the group’s trading performance in the 2024 financial year – one that investors would deem disappointing rather than surprising.

Sales for 2024 will be slightly below that achieved in 2023, in a discretionary retail environment that has left most in the sector challenged.

The performance update punished Premier Investment’s share price, which was down 4.5 per cent by lunch.

But it is the announcement on Cheston that has captured the attention of retail and governance experts.

We are now hanging out for the next episode.

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