Before we dismiss Michelle Teague as a reject of Kmart, from all...

Before we dismiss Michelle Teague as a reject of Kmart, from all accounts she was a well regarded exec of a great retailer. I struggle to see many better people than her to sit on The Reject Shop board. It appears that she made the decision to leave Kmart, and the fact that she wanted to go onto the TRS Board means she sees potential in the business.

As for the selloff, TRS is so sentiment driven at the moment it wouldn't surprise me if the Toys R Us bankruptcy caused some more anxiousness amongst retailer investors. It is however worth noting that Toys R Us has been saddled by debt and on the brink of bankrupcy for more than 10 years. Online was its final nail in the coffin, but it had >$7bn in debt and geared at more than 5x for the past 5+ years.

I also note that Sudano was in the AFR yesterday spruiking that he believes he has stabilised the business and has a much better product mix now than at the time of the April downgrade. You can never say never, but it would be a strange comment to make to a journo if the past few weeks trading had been poor.

For those of you who are interested, here's a clip on Michelle Teague that is worth a watch.