CHESHUNT, ENGLAND - Less than a month after suspending four top executives as a result of the £250 million profit overstatement controversy, Tesco is asking a fifth to step aside. This time the departing executive is Commercial Director Kevin Grace.
Tesco's CEO Dave Lewis is still investigating the accounting error which gave rise to this controversy, one which he was thrust into within weeks of assuming his post on September 1st. According to BBC, he has tasked the accountancy firm Deloitte and law firm Freshfields with executing this internal investigation. Last week, the Financial Conduct Authority informed Tesco that it would also be conducting an independent investigation into the matter.
Throughout the process, Lewis has stressed to the media and members of the retail community that the suspension of the five executives should not be interpreted as “disciplinary or an admission of guilt.”
Some good news for Tesco investors has come in the past week however, with the appointment of Richard Cousins and Mikael Ohlsson to its Board as non-Executive Directors.
“I am delighted to welcome Mikael and Richard to the Board and know that their broad skills and experience will be a real asset to the Company in the coming years," shared Tesco Chairman Sir Richard Broadbent in a press release. "Mikael and Richard have been updated on and are wholly supportive of the steps being taken by the new management team to rebuild trust in Tesco and to focus all the resources of the business to deliver value to our customers.”
Tesco also brought new CFO Alan Stewart in ahead of schedule late last month, as Reuters reported.
Hopefully this injection of fresh leadership will be enough for Britain's largest retailer to restore itself to its former enviable position in the British economy.
For future updates on Tesco as we move into the future, stay tuned to AndNowUKnow.
