Smiggle Investigation Goes Global as Retail Giant Tackles Misconduct Claims
The fallout from allegations of serious misconduct against former Smiggle managing director John Cheston has intensified, with billionaire retailer Solomon Lew confirming that an internal investigation has expanded beyond Australian shores. Cheston, who had previously resigned from his role at the popular stationery and accessories chain to take up a leadership position at rival jeweller Lovisa, owned by Brett Blundy, found his tenure cut short in November 2024. This abrupt termination followed claims of a “serious breach of his employment terms.”
Lew, the driving force behind Premier Investments, the parent company of Smiggle, indicated that the complexity of the situation has escalated. “The lawyers have instructed me not to comment, but it’s taking longer because it’s now an international investigation,” he stated to reporters. While declining to elaborate further on the specifics of the ongoing inquiry, Lew’s remarks signal a significant deepening of the probe.
John Cheston has consistently refuted these accusations, labelling them as “false, vindictive and profoundly disappointing.” He has also asserted that he was “denied procedural fairness” throughout the process. A spokesperson for Cheston, speaking previously, had dismissed the allegations as “simply untrue,” suggesting that Premier Investments was struggling to accept his departure.
The spokesperson elaborated, stating, “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. Mr Cheston has moved on and Premier should do the same.”
New Leadership at Smiggle Amidst Strategic Shift
Lew’s comments regarding the investigation were made in conjunction with the unveiling of Premier Investments’ half-year results for the 2026 financial year. During this announcement, it was revealed that Georgia Chewing, the interim chief operating officer, has been officially appointed as Smiggle’s new managing director. Chewing brings a wealth of experience to the role, having been with the business for an impressive 14 years.
The appointment of Chewing marks the culmination of a global search to fill the vacancy left by Cheston. Lew expressed confidence in her capabilities, highlighting her instrumental role in “totally revamp[ing] the operation and energise[ing] the people at no extra cost.” He further praised her achievements in establishing and growing Smiggle’s online presence, which now accounts for a significant 23 per cent of the business and is described as “highly profitable with big turnover.” Lew lauded Chewing as a “skilled operator and very structured in the way that she works with her people.”
This leadership change coincides with a strategic refocusing for Smiggle. The brand experienced a sales decline of 10.7 per cent, reaching $140.5 million during the half-year period. This downturn was partly attributed to a shift in focus that skewed the brand towards younger customers, moving away from its core demographic. Smiggle is now actively returning its attention to its primary customer base: children of primary school age.
“In the management some time ago, we were starting to lose sight of that six to 12 [year old] customer and we were concentrating heavily on the preschool and kinder,” Lew explained. He stressed that the management team responsible for this strategic drift is no longer in place, stating, “I’m not going to name the people, but that management, those decision makers, are no longer there. That’s the best I can do.”
To further cater to this core demographic, Smiggle intends to expand its range of beauty accessories, such as novelty lip gloss charms for backpacks, responding to growing teen demand in the beauty sector. “We realised what had transpired, and we’re now back onto designing a different product, different styles, et cetera, for the six to 12 category. They’re different to the tiny tots, totally different,” Lew commented. “That’s when we started our business, and that’s where we need to focus now.”
Peter Alexander Continues to Shine
In contrast to Smiggle’s recent challenges, Premier Investments’ pyjama chain, Peter Alexander, has demonstrated robust growth. The brand posted a healthy 4.9 per cent sales increase, reaching $312.3 million. This success has been bolstered by the opening or relocation of four new stores and the introduction of a new loyalty program, “Peter’s Dreamers.” This initiative is reportedly driving more frequent and larger purchases from its members compared to non-members.
The executive chairman of Premier Investments noted that rising interest rates do not appear to have dampened consumer enthusiasm for Peter Alexander. “It’s a wanted product; it’s go-to for gift giving. There’s nothing like it. We’re expanding the product ranges continuously,” Lew remarked, highlighting the brand’s consistent appeal and ongoing product development.
