The new chief executive of Winning Group, Anthony Heraghty, has suffered an early setback in his legal battle with the Australian Securities and Investments Commission (ASIC), with the Federal Court rejecting his bid for broader access to more than 21,000 documents gathered during an investigation into his conduct at Super Retail Group.

Heraghty, who became the first non-family member to lead the 120-year-old Winning business earlier this year, is facing civil penalty proceedings over allegations that he breached his directors’ duties and misled the market and the Super Retail board about a workplace relationship with a senior human resources executive.

The proceedings come at a sensitive time for Winning Group, which is battling increased competition, pressure on revenues and uncertainty surrounding a proposed initial public offering (IPO).

Heraghty joined Winning Group just days before ASIC commenced proceedings against him on September 21.

The regulator alleges that his conduct while chief executive of Super Retail Group, owner of Supercheap Auto, Rebel, BCF and Macpac, exposed the listed retailer to foreseeable risks of harm, including damage to its corporate reputation.

The allegations centre on his relationship with former senior human resources executive Kelly, (seen below) including claims that Heraghty continued supervising her, participated in decisions concerning her remuneration, incentives and redundancy arrangements, and was involved in board discussions about complaints relating to the relationship.

ASIC alleges breaches of sections 180 and 1309(2) of the Corporations Act and is seeking declarations of contravention, financial penalties and orders disqualifying Heraghty from managing corporations.

Heraghty has not been found to have breached the law, and no court order currently prevents him from holding his position at Winning Group.

However, an adverse ruling resulting in a disqualification order could have serious consequences for both Heraghty and the appliance retailer.

A prohibition on managing corporations would effectively prevent him from continuing as Winning Group CEO for the duration of any such order.

Federal Court Rejects Wider Document Access

The latest development came during a Federal Court hearing in which Heraghty’s legal team sought access to ASIC’s extensive investigative material.

The regulator has accumulated more than 21,000 documents, including examination transcripts and material relating not only to Heraghty’s alleged conduct but also to its broader investigation into Super Retail Group, its officers and employees.

ASIC opposed the wider disclosure request, arguing that only documents relevant to the proceedings against Heraghty should be made available.

Counsel for ASIC, Matthew Brady, described the application for broader access as little more than a fishing expedition.

“If it’s relevant to these proceedings, then it should be disclosed. If it’s not relevant, then it shouldn’t be … in relation to the wider disclosure that’s being sought … it is really is little more than a fishing expedition,” Brady told the court.

ASIC also raised concerns that disclosure of some material could identify whistleblowers involved in exposing the workplace scandal.

Heraghty’s legal representative countered that the identities of the whistleblowers were already known to her client.

Justice Roger Derrington ruled that Heraghty’s lawyers could access ASIC documents relevant to the current proceedings but rejected the request for broader access to the regulator’s investigation into Super Retail.

The judge did, however, leave open the possibility of a further application for additional documents later in the proceedings.

Heraghty has until December 18 to file his defence, with mediation between the parties ordered for late February after pleadings have been filed.

$30M Legal Scandal Follows Heraghty To Winning

The ASIC proceedings follow a workplace controversy that erupted at Super Retail Group in 2024 following allegations raised by whistleblowers.

The retailer subsequently disclosed legal costs of approximately $30 million associated with the scandal.

ASIC alleges the relationship between Heraghty and the senior executive had been intermittent since at least 2022.

The regulator has also alleged that the pair travelled to Tasmania, Germany and London during a three-month period shortly before the relationship became public.

The allegations and subsequent legal proceedings have now followed Heraghty into his new role at Winning Group, where he was appointed to oversee a business facing its own significant commercial challenges.

Winning Group chairman John Winning Snr has publicly backed the appointment, telling employees in a staff memorandum that the company was aware of the circumstances surrounding Heraghty’s departure from Super Retail when it hired him.

IPO Uncertainty As Winning Battles Revenue Pressure

The legal battle has introduced another complication for Winning Group and its shareholders, including investment firm Ellerston Capital, as they consider the company’s longer-term future and a possible stockmarket listing.

Before his departure as chief executive, John Winning had flagged the possibility of floating the family-founded business before the end of 2026.

That ambition is now reportedly on hold.

Winning Group’s most recently disclosed financial results showed revenue of $885.5 million and a pre-tax profit of just $5.8 million.

The company has indicated that it expects sales of approximately $1 billion and earnings of around $50 million this financial year, although the business has been affected by weakness in the construction and housing sectors.

Heraghty has also inherited an executive exodus and growing competition in the premium appliance market.

One of the biggest threats is coming from JB Hi-Fi Group, which is expanding its exposure to the appliance sector through The Good Guys and its acquisition of premium appliance retailer e&s.

That expansion has increased competitive pressure on established appliance specialists, including Winning Appliances and Appliances Online.

For Winning Group, the timing of the ASIC proceedings is particularly awkward.

Institutional investors considering participation in an IPO would be expected to scrutinise the legal exposure of a chief executive facing active civil penalty proceedings, particularly where the regulator is seeking disqualification orders.

Analysts argue that uncertainty surrounding the future of a company’s chief executive could complicate institutional marketing and the prospectus process.

Federal Court civil penalty proceedings can take a year or longer to resolve, potentially leaving the Winning Group facing uncertainty over its leadership well into 2027.

Although the Federal Court’s latest ruling represents a procedural setback for Heraghty’s legal team, it does not determine the merits of ASIC’s allegations.

The central issue for Winning Group is whether its new chief executive can successfully defend the proceedings while simultaneously delivering a financial turnaround and preparing the business for a potential public listing.

For a retailer attempting to strengthen earnings, defend market share and attract institutional investment, the outcome of the ASIC case could have significant consequences well beyond the courtroom.