By Colin Kruger
The board of Rebel Sport owner, Super Retail Group, has denied bombshell allegations of an undisclosed relationship involving its chief executive, Anthony Heraghty, and bullying claims that are expected to form the basis of a $50 million lawsuit.
The company, which also owns Supercheap Auto, Macpac and BCF, told the ASX on Friday that it expected two employees, represented by Harmers Workplace Lawyers, would shortly commence court proceedings in a damages claim in the range of $30 million to $50 million.
Super Retail Group has denied allegations of bullying and an undisclosed relationship involving chief executive Anthony Heraghty. Credit: Dan Peled
Super Retail said it expected the proceedings’ allegations to include the non-disclosure of a relationship between Heraghty and the group’s former HR boss, who is not one of the two employees making the claim.
Other allegations include inappropriate company travel, bullying, victimisation and adverse treatment. This includes particular employees in the corporate team having unreasonable workloads, insufficient resources and restricted access to information.
“The board has conducted a review and investigations into these allegations,” the company said. “The board was supported by independent external advisers. The board’s review and investigations concluded that none of the allegations are substantiated.”
Rebel Sport owner Super Retail expects court proceedings will commence soon.Credit: Fairfax Media
The company was made aware of the allegations in December last year, when the investigation started.
Super Retail said it would defend any court proceedings in relation to the allegations via its lawyers from Allens: “As these matters are expected to be the subject of litigation, the group does not intend to make any further comment at this time,” it said. “The group will update the market on this matter as appropriate.”
Harmers Workplace Lawyers disputed the accuracy of Super Retail’s announcement.
“We can confirm that we are acting for several Super Retail Group employees. In response to the ASX statement issued by Super Retail Group today, we believe it contains major inaccuracies. We have no further comment at this stage,” a Harmers’ spokesman said.
Super Retail shares dropped more than 8 per cent this morning to a low of $13.65, after the announcement was made.
The $3 billion group reported a 3 per cent rise in sales to $2 billion for the December half, and a slight fall in net profit to $143 million – higher than expectations given the tough retail market hammering rivals such as KMD Brands.
After the result in February, Jarden Securities said: “Super Retail is doing a great job in our view, with a consistent message and delivery to the strategy ... we are nearing or at the bottom of the cycle which, coupled with peaking CODB [cost of doing business] inflation, easing FOB COGS [freight on board cost of goods sold] and share gains, leaves us becoming more positive.”
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.