Super Retail Back In Federal Court Defending Itself
Top executives from Super Retail Group are back in Federal Court this week for three days of hearings, although different lawyers will be present this time around.
The former chair of Super Retail Group, Sally Pitkin, has hired new lawyers to act on her behalf. She will now be represented by Arnold Bloch Leibler, while Super Retail and its current executives and directors are retaining the services of law firm Allens, reported The Australian.
Pitkin’s legal bills will still be picked up by the Super Retail Group. “As a respondent in the workplace litigation proceedings initiated while Dr Pitkin was Super Retail Group chair, it is anticipated any legal costs would be covered by Directors’ and Officers’ Indemnity Insurance,” said a spokesperson.
At this week’s court hearings, the company’s execs are battling sacked chief legal officer Rebecca Farrell where arguments will be heard over whether Super Retail made an enforceable deal with Farrell over her sacking.
The company contends there was no deal. Farrell claims a deal was reached, and the company has since failed to honour it. The alleged deal contains confidential clauses that have been suppressed by the court at the request of Super Retail.
Farrell is being represented by Harmers Workplace Lawyers, which is also representing a second whistleblower, former co-company secretary Amelia Berczelly.
Farrell has contended that her sacking came about after she raised a number of serious workplace allegations against chief executive Anthony Heraghty, then chair Pitkin and other executives.
The workplace allegations stem from allegations including the nondisclosure of a sexual relationship between Heraghty and the former head of HR, Jane Kelly, allegedly inappropriate company travel to further that affair, bullying, victimisation and adverse treatment and unsatisfactory company record management.
Documents lodged with the Federal Court by the whistleblowers alleged Super Retail’s whistleblower system was “significantly compromised” by Pitkin and another unnamed board member to suppress staff complaints of the alleged affair. Emails and board minutes were also allegedly deleted.
Berczelly has claimed Heraghty on multiple occasions attempted to “bully, intimidate and coerce” her into amending the minutes of a December board meeting and a related board paper.
Berczelly feared that certain executives had been replaced, and their duties changed, to suppress whistleblower reports of the affair between the CEO and another powerful executive, court documents claim.
While Super Retail has denied the alleagations, it has also said that the company’s board, supported by independent external advisers, conducted a review and investigation into the allegations and has concluded that none of the allegations were substantiated.
It did inform the ASX earlier this year saying it expected workplace litigation that could cost it $30m to $50m.
Super Retail Group, one of Australia’s largest retailers and owner of chains including Rebel, Supercheap Auto, Macpac and Boating, Camping and Fishing (BCF) posted record sales of $3.9 billion for the full year ended 29 June 2024, up 2.1 per cent year-on-year.