Brisbane-based retail giant, Super Retail Group, has issued a scathing statement defending itself against a lawsuit alleging that its CEO and group managing director Anthony Heraghty had an undisclosed relationship with the company’s former chief human resources officer Jane Kelly.
In a statement issued to the ASX on Friday, the group says that it expects court proceedings against it to commence in a lawsuit filed by “two employees” represented by Harmers Workplace Lawyers. The employees are expected to jointly claim loss and damage in the range of A$30 million to A$50 million.
It notified the ASX that the allegations in the proceedings will include “the non-disclosure of a relationship” between Heraghty and Kelly (who is not one of the two employees making the claim) as well as claims of “inappropriate company travel; bullying, victimisation and adverse treatment; particular employees in the corporate team having unreasonable workloads, insufficient resources and restricted access to information; and unsatisfactory company record management.”
Anthony Heraghty, CEO and group managing director of Super Retail Group
It has noted in its statement that the company’s board, supported by independent external advisers, conducted a review and investigation into these allegations. It concluded that none of the allegations are substantiated and it will now defend itself in any court proceedings while being represented by Allens.
The decision by Super Retail Group to go on the offensive demonstrates that it not only believes that the case doesn’t have merits, but also perhaps that it regards the claims as potentially a shakedown of a multi-billion dollar retail group.
Super Retail Group is one of Australia’s largest retailers and is the owner of chains including Rebel, Supercheap Auto, Macpac and Boating, and Camping Fishing. It has 736 stores, nearly 16,000 staff and annual revenues of A$3.8 billion.
Harmers is also set on a collision course with Super Retail as it released its own statement highlighting what it calls “major inaccuracies” in the statement issued to ASX and added that there were “several” clients represented in the claim.
The decision by Super Retail to go on the offensive seems to have been paid off. While its shares initially fell by 8 per cent on Friday to scrub off nearly A$280 million from its market valuation, on Monday it had recovered to trade at nearly A$14.75 mark, which was close to the levels it was being traded at a week prior.
