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Tesco asks fifth executive to step aside after profit error | Tesco asks fifth executive to step aside after profit error |
(about 5 hours later) | |
UK supermarket giant Tesco has asked a fifth executive to step aside, as the fall-out from its £250m profit forecast overstatement continues. | UK supermarket giant Tesco has asked a fifth executive to step aside, as the fall-out from its £250m profit forecast overstatement continues. |
Commercial director Kevin Grace has been asked to step aside while Tesco investigates the matter. | |
Four other executives have already been asked to step aside, including UK managing director Chris Bush. | Four other executives have already been asked to step aside, including UK managing director Chris Bush. |
Chief executive Dave Lewis has launched an investigation in the accounting error. | |
Mr Lewis, who took over the role from from Philip Clarke on 1 September, has seen billions wiped off the value of Tesco's stock market value as a result of the mis-reporting. | Mr Lewis, who took over the role from from Philip Clarke on 1 September, has seen billions wiped off the value of Tesco's stock market value as a result of the mis-reporting. |
But he has made clear that the actions taken against the Tesco executives are not "disciplinary or an admission of guilt." | But he has made clear that the actions taken against the Tesco executives are not "disciplinary or an admission of guilt." |
Accountancy firm Deloitte and law firm Freshfields are carrying out the internal investigation. | Accountancy firm Deloitte and law firm Freshfields are carrying out the internal investigation. |
But last week, Tesco said it had been notified by the Financial Conduct Authority that it was under investigation over the guidance error. | But last week, Tesco said it had been notified by the Financial Conduct Authority that it was under investigation over the guidance error. |
Tesco's share price has plummeted 50% in a year, as falling sales, boardroom reshuffles, and increased competition from rival supermarkets such as Aldi and Lidl, have spooked investors. | Tesco's share price has plummeted 50% in a year, as falling sales, boardroom reshuffles, and increased competition from rival supermarkets such as Aldi and Lidl, have spooked investors. |
This week Mr Lewis refreshed his board with the appointment of Compass boss Richard Cousins and former Ikea boss Mikael Ohlsson as non-executive directors. | This week Mr Lewis refreshed his board with the appointment of Compass boss Richard Cousins and former Ikea boss Mikael Ohlsson as non-executive directors. |
Tesco still has a 28.8% share of the UK grocery market, according to retail analyst Kantar Worldpanel. | Tesco still has a 28.8% share of the UK grocery market, according to retail analyst Kantar Worldpanel. |