World's 2nd Biggest Retailer Faces 'Operational Paralysis' As Execs Have Laptops Confiscated
REUTERS/Valter Pontes
In addition, 10 of the company's most senior staff have been suspended, asked to leave or stepped down from the company.
In a note, Cantor Fitzgerald analyst Mike Dennis said:
The forensic investigation could, in our view, create operational paralysis for Tesco ahead of the very busy Christmas build up. We believe the investigation requires all commercial department personnel to hand over communication systems (laptops) to be interrogated and all supplier meetings to be postponed then, we believe Tesco's ability to operate could be compromised at a critical period ahead of the start of the build up to Christmas trading.
Tesco is the UK's biggest supermarket by a long way, and the world's second-largest retailer. Its share price is down 1.91% on the latest news today, and has been slashed by more than 50% in the last year.
There has already been an implosion within Tesco's management. Today, three more execs were suspended, according to The Times: Dan Jago, head of beers, wines and spirits, Sean McCurley, a category director for convenience foods, and William Linnane, who oversees impulse purchases.
Seven senior directors have previously been kicked out of the company. The most recent pair left yesterday: company secretary Jonathan Lloyd and chairman of the audit committee Ken Hanna. Before them, commercial director Kevin Grace left, preceded by Chris Bush, managing director for the UK; Carl Rogberg, who worked with him in Tesco's business in Thailand and is UK finance director; John Scouler, food commercial director; and Matt Simister, who is responsible for sourcing.
Company chairman Sir Richard Broadbent is regarded as another exec who may be required to leave the company. One of Tesco's directors is searching for a replacement, according to Sky.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- An Ambani disruption in OTT: At just ₹1 per day, you can now enjoy ad-free content on JioCinema
- In second consecutive week of decline, forex kitty drops $2.28 bn to $640.33 bn
- SBI Life Q4 profit rises 4% to ₹811 crore
- IMD predicts severe heatwave conditions over East, South Peninsular India for next five days
- COVID lockdown-related school disruptions will continue to worsen students’ exam results into the 2030s: study
- India legend Yuvraj Singh named ICC Men's T20 World Cup 2024 ambassador
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market