Blog: Tesco profits plunge, chairman departs
Katy Askew | 24 October 2014
Tesco has reported a massive 92% drop in first half profits as the accounting fiasco continues to widen.
A probe into Tesco's accounting practices has uncovered an accounting black hole that has resulted in a GBP263m profit overstatement.
Former CEO Philip Clarke resigned this summer, before the accounting issues became public. His successor, former Unilever executive Dave Lewis is now faced with the somewhat daunting task of cleaning up the mess.
Lewis has started a strategic review and until this is complete it is unlikely we will see any major strategy shake-up from the UK's largest retailer.
However, what we can expect is for heads to roll.
Eight senior executives have been suspended pending the outcome of the inquiry, which is probing how Tesco logged suppliers' rebates and if they were reported in the correct accounting period.
And - predictably perhaps - alongside the dire profit news delivered to the market this morning was Tesco chairman Sir Richard Broadbent, who confirmed plans to quit.
The UK's competition regulator has given the all-clear to Hain Celestial's bid to buy UK food and beverage group Orchard House Foods, nine months after the US group announced the deal....
Hershey made an unusual announcement today (20 September), sharing its own sales data for the last four weeks to assuage any possible investor concern over figures released by Nielsen....
As the UK starts to ponder what kind of a relationship it wants with the European Union post-Brexit, EU leaders have been lining up to warn that Britain will not be allowed to "cherry pick" deals and ...
Low food prices continue to hold back inflation rates in the UK as the supermarket price war continues in the face of rising import costs. ...
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