David Jones: public relations 1, common sense 0

It was easy and it was wrong.

As he was holding onto Ms McInnes’ letter of resignation, the Chairman of David Jones, Mr Robert Savage, conceded the firm would clearly “suffer” the consequences. An opaque reference to the stellar, yet at times controversial career of its very able ex-CEO. Yet, rather than diagnose the problem accurately and in turn prescribe the right treatment, the Chairman nominated Mr McInnes’ deputy, Mr Paul Zahra to succeed him.

The Chairman’s blatant attempt to put daylight between his company and the behaviour of McInnes can be seen only in this glow. Damage control. Shine the torch on the alleged transgressor and return to the organisation’s core mission as swiftly as possible. Oh, and ignore the bleeding obvious: that a return to the core mission is fundamentally handicapped while the key player is busy cruising the Chao Phraya.

To say that the board was shocked, disappointed and taken aback by McInnes’ behaviour is an understatement. But for them to act out of any sense of personal insult and in so doing, putting their own egos ahead of the interests of countless shareholders merely unmasks the board is in way over their heads.

Assuming McInnes sinned, then he needs to repair the damage he caused. Confess in full his transgressions and make reparations. His speed and desire to make amends is all that is necessary to nourish a new growth of trust between him and Ms Fraser-Kirk. The sooner he does so and the sooner he returns to his rightful role at David Jones, the better for all parties concerned.

Until then, the only unambiguous winners from this whole sorry affair are a very different group of shareholders.

Those holding shares in Myer.