UK: Iceland launches internal investigation on actions of previous management

Iceland CEO Bill Grimsey is believed to have launched an investigation into the methods employed to select suppliers for the frozen food retailer before he took over the helm at the beginning of this year. According to a report in the Mail on Sunday , evidence exists to suggest that buyers for the chain were told which suppliers to choose, regardless whether they were the most competitively priced.

October 22, 2001

Iceland

CEO Bill Grimsey is believed to have launched an investigation into the methods employed to select suppliers for the frozen food retailer before he took over the helm at the beginning of this year.

According to a report in the Mail on Sunday, evidence exists to suggest that buyers for the chain were told which suppliers to choose, regardless whether they were the most competitively priced.

This is not the first time the actions of the previous management have come under the spotlight. The departure of Iceland founder Malcolm Walker from the chain in January was dogged by allegations of insider dealings as he sold £13.5m (US$19.33m) worth of shares in December before the company’s stock price collapsed. A number of London-based analysts have recently been asked to provide evidence on the issue to the Department of Trade and Industry.