Appliance retailer Winning Group is facing a fresh crisis, with its newly appointed chief executive Anthony Heraghty caught up in explosive allegations brought by corporate regulator ASIC over his conduct at Super Retail Group, while questions mount over the future of a proposed stock market float.

The Sydney headquartered retailer, which sources claim is already battling falling sales amid a downturn in the construction industry, is now facing an unwelcome distraction as its new CEO prepares to defend allegations that he breached his directors’ duties and misled the board and market at his former employer.

Management at the premium appliance Company ware also facing a new threat with the roll out of arch rival e&s into NSW and The Gold Coast in 2027, the business is controlled by the JB Hi Fi Group.

Heraghty, who was appointed to replace John Winning in late July, was expected to play a key role in preparing the privately owned appliance business for a potential stock market listing in 2027.

That plan is now reportedly on hold, according to sources, although Winning Group has not publicly confirmed that the proposed float has been abandoned or delayed.

The controversy has intensified following Federal Court filings by the Australian Securities and Investments Commission (ASIC), which allege that Heraghty concealed a relationship with Super Retail’s former head of human resources, Jane Kelly, and failed to properly manage an alleged conflict of interest.

News Corp has described the former Super Retail boss as a “Love Rat”, with details of the alleged relationship, overseas meetings and private communications now emerging in reporting about the regulator’s case.

For Winning Group, the timing could hardly be worse.

According to industry sources and appliance brands dealing with the retailer, sales have weakened this year as the business confronts a deteriorating residential construction market and the collapse of building companies that have traditionally generated demand for premium kitchen and laundry appliances.

The company has not released figures substantiating those claims.

The latest controversy also raises questions for Ellerston Capital, the investment management business associated with Ashok Jacob and Chris Kourtis, which reportedly invested A$100 million in Winning Group earlier this year.

The investment was viewed as an important development ahead of a potential listing, with Heraghty’s experience running a major publicly listed retailer expected to be valuable in preparing the business for the sharemarket.

Now, instead of concentrating on expansion, profitability and a possible IPO, the Winning chief executive faces Federal Court proceedings in Brisbane over allegations arising from his previous employment.

ASIC alleges that Heraghty failed to adequately disclose and manage a relationship that created conflicts with his corporate responsibilities.
The regulator’s allegations have not been determined by the court.

Central to the proceedings are private text messages and WhatsApp communications reportedly obtained during ASIC’s investigation.
According to reports of the court documents, the messages detail the alleged relationship, including overseas meetings and overnight accommodation in hotels and Airbnb properties.

The regulator also alleges that Heraghty attempted to limit disclosures about the breakdown of his marriage after concerns about the relationship surfaced at Super Retail.

Court documents reportedly reveal that Heraghty’s wife became aware of the relationship soon after it began in 2022.

More than a year later, following a whistleblower complaint to Super Retail, Heraghty allegedly warned his wife about the potential consequences of discussing their personal circumstances or communicating electronically.

“Anything you send me to this phone on any channel is potentially discoverable in any legal proceeding. That has always been the case and hasn’t been a risk until the events of the last week or so,” Heraghty allegedly wrote.

In another message cited in the reporting, he allegedly warned that phones, text messages and sharing details of their marriage breakdown could have “potential catastrophic consequences”.

He also allegedly claimed to have protected their privacy and financial position.

ASIC’s case raises questions about whether the alleged relationship was appropriately disclosed to Super Retail’s board and whether the company’s governance arrangements adequately addressed the potential conflicts.

The affair allegations first became public in 2024, when Super Retail was confronted with whistleblower complaints concerning its chief executive, workplace conduct and the alleged relationship.

Then chairman Sally Pitkin engaged law firm Hamilton Locke to investigate the complaints.

Super Retail subsequently maintained that the investigation had not substantiated the allegations, providing the board with grounds to continue supporting Heraghty and contest the whistleblower claims.

However, the evidence now described in ASIC’s court filings has renewed scrutiny of the earlier investigation and what information was available to the lawyers and directors at the time.

Hamilton Locke has declined to comment on questions about its investigation.

There has been no judicial finding that the law firm acted improperly or that its investigation was deficient.

For Winning Group, the immediate issue is whether a chief executive facing serious regulatory proceedings can continue to lead a major retail business through difficult trading conditions and a possible public listing.

Anthony Heraghty seen here with the whistleblowers that bought him unstuck.

Despite the controversy, the Winning board is standing firmly behind Heraghty.
In a memorandum to staff, Winning Group chairman John Winning Snr defended the appointment and made clear that the company’s leadership had not lost confidence in its new chief executive.

“Anthony was hired for his excellent track record in running retail businesses, where he has consistently delivered strong results despite some of the toughest operating conditions in decades,” he said.

“In his short time with us, Anthony has sharpened our approach and made a meaningful impact on our operations. We want to assure you the board’s confidence in the direction of the business under his leadership remains firm.”

The public show of support comes as questions are being raised about the due diligence undertaken before Heraghty’s appointment and the potential impact of the ASIC proceedings on the retailer’s plans.

Heraghty’s remuneration package at Winning Group has not been publicly disclosed.

Ellerston Capital chief investment officer David Keelan also declined to comment when approached by The Australian, referring inquiries to a Winning Group spokesman, who similarly declined to comment.

The situation presents a potentially awkward challenge for investors considering any future Winning Group float.

Prospective shareholders would be expected to scrutinise the company’s governance arrangements, management stability, earnings outlook and any material legal or reputational risks associated with its leadership.

An unresolved regulatory case involving the chief executive could complicate that process, although there is no evidence that it would automatically prevent a listing.

There is also the question of how much time Heraghty will have to devote to defending the proceedings while attempting to improve Winning Group’s retail performance.
ASIC’s allegations relate to his time at Super Retail, not misconduct at Winning Group.
Nevertheless, the proceedings are an unwelcome development for a business that has spent years building its position in Australia’s premium appliance market and was reportedly preparing for a major change in ownership structure.

The bigger question is whether Winning Group’s board and its financial backers are prepared to push ahead with a potential billion dollar float while its chief executive is defending serious allegations brought by Australia’s corporate regulator.
For now, the Winning board has made its position clear: Heraghty retains its support.

Whether that confidence will be shared by prospective institutional investors if the company proceeds with its proposed listing remains an open question.