Three Tesco execs suspended as inquiry continues
TESCO has suspended another three executives amid the inquiry into its £250 million overstatement of profit expectations.
The move brings to eight the number of people asked to step aside since an investigation into the error was launched last month by new boss Dave Lewis. The three latest suspensions are understood to involve Dan Jago, head of beer, wine and spirits, Sean McCurley, director of convenience, and William Linnane, director of impulse purchases.
Britain’s biggest supermarket chain said it would give an update alongside next week’s half-year results.
A spokesman said: “We have asked three employees to step aside to facilitate the investigation into the potential overstatement of profits in UK food for the first half of the year. We will provide an update on the investigation with our interim results.”
Four senior executives, including UK managing director Chris Bush, were asked to step aside last month when Tesco revealed that its most recent profits warning to the City in August was much too optimistic.
Lewis said at the time the suspensions would allow the firm to carry out a “full and frank” investigation and were not disciplinary or an indication of guilt.
Last week it was reported that Tesco had asked commercial director Kevin Grace to step aside pending an independent review by Deloitte. The group, which has issued a series of profit warnings as the sector faces a price war amid a squeeze from discount retailers Aldi and Lidl, is also facing an investigation by the Financial Conduct Authority.