Roger Corbett backs Mathiesons, says Dan Murphy’s has ‘lost its mojo’

“It’s confused, and that’s why it’s not doing well. My expertise is really in the Dan Murphy and BWS chains, and I’ve got to say that I think they’re just a disgrace,” Mr Corbett added. “Loss of market share, expenses out of control indicate that the board needs to have a really fundamental look at itself. If the board is protecting the management, then that’s not a good situation.”

Mr Corbett’s comments came as a fracture emerged at the top of Endeavour after Bruce Mathieson jnr backed Mr Wavish’s election to the board. Director Colin Storrie, who is leaving the board this year, abstained from making a recommendation.

In the meeting notice released on Wednesday, Endeavour chairman Peter Hearl told shareholders to vote against Mr Wavish’s nomination, but to elect Bruce Mathieson jnr and Rod van Onselen as directors.

Wavish ‘qualified and suitable’

“There has not been sufficient time since receiving Mr Wavish’s nomination ... for the board to complete the customary processes it undertakes in selecting and appointing directors, including the associated probity assessments, in relation to Mr Wavish,” the notice reads.

“Mr Wavish was invited to participate in the formal director search process under way and to be considered with other prospective candidates. At the time, he declined to participate in this process. The offer remains open to Mr Wavish to join the process.”

Mr Wavish was closely involved in Woolworths’ liquor and hotels businesses during his time with the company. He has touted his experience leading the re-organisation of part of the businesses into BWS, and the acquisition of large numbers of liquor licences.

Bruce Mathieson jnr believes that Mr Wavish is a “qualified and suitable candidate” to be elected to the board.

Mr Mathieson jnr’s father said earlier: “We are going backwards under the current management of Peter Hearl and Steven Donohue.”

Endeavour performance disappointing

Mr Wavish spent $504,000 buying about 90,000 shares three months ago. He said it was “a travesty to see the amount of money that’s being lost”.

In a note to clients on Wednesday, Bank of America analyst David Errington said there was material upside to Endeavour if its underachieving assets reached their full potential. He estimated $100 million in EBIT could be generated in the hotels business if it were to improve its operations and reinvest in venues. He cut his earnings expectations over the next three years due to higher costs and lagging hotels earnings.

But Mr Errington said he was “somewhat disappointed by the operating performance of Endeavour, notably the hotels business” since the demerger from Woolworths Group in 2021. He added that its hotels underperform in terms of patrons visiting their venues. He estimates gaming comprises about 42 per cent of hotels revenue, and that post-tax revenue per poker machine is about $66,000, while peers are sitting at $73,000 per machine.

Woolworths and AustralianSuper are the other two significant Endeavour shareholders. Both declined to comment on Wednesday.

Mr Corbett, who acquired five Dan Murphy’s stores in 1998 for Woolworths, said he has not talked to other shareholders but has had a long relationship with the Mathiesons.

Woolworths later entered into a deal with the Mathiesons, and created the Australian Leisure and Hospitality Group, a precursor to Endeavour.

The company was listed on the ASX at $6.60 per share. They have fallen 24 per cent in 12 months, to trade at around $5.30 on Wednesday.

The group,the largest owner of poker machines in Australia, has plans to reduce gaming hours in its Victorian pubs, after the government’s introduction of new gambling reforms in July. Analysts believe there is serious risk to its earnings from 2026 or beyond if mandatory gambling limits are implemented on pokies.