TescoGate: Three suspended bosses reported to have left Tesco with more to follow

By Erin Smith

Published: 28 November, 2014

Kevin Grace, group commercial director, Carl Rogberg, UK finance director, and John Scouler, UK food commercial director, three of the executives that were suspended from Tesco following its accounting crisis have left the company, according to a Financial Times report. Other suspended executives, including head of beers, wines and spirits, Dan Jago,could be dismissed next week, according to media reports.

Kevin Grace, group commercial director, Carl Rogberg, UK finance director, and John Scouler, UK food commercial director, three of the executives that were suspended from Tesco following its accounting crisis have left the company according to a Financial Times report. Other suspended executives, including head of beers, wines and spirits, Dan Jago, could be dismissed next week, according to media reports.

The three named executives were part of the initial group of executives suspended when UK's largest retailer announced it had overstated profits by over £260 million early this autumn.

It is also being reported in the national press that the five other suspended executives, including Jago, could be dismissed as early as next week. The Independent has said Jago along with managing director for Tesco UK Chris Bush, Matt Simister, sourcing director, and William Linnane, impulse purchases buyer could all leave the company next week as the investigation in to the overstatement of profits at the group intensifies.

According to the Financial Times three executives left the company on Wednesday, but this has not been confirmed by Tesco.

The accounting scandal was first reported in September when new chief executive Dave Lewis first joined the helm of the struggling supermarket giant.

Shareholders were initially told that the overstatement of profits was estimated to be £250 million. After an internal audit overseen by the Financial Conduct Authority and following the suspension of three more executives, including Jago, the company confirmed in October that the overstatement of profits was in fact £264 million.

The same day the chairman of Tesco Sir Richard Broadbent stepped down and the case was then handed over to the Serious Fraud Office for further investigation. Following the confirmation of the overstatement of profits and the possibility for shareholder litigation Moody's Credit Agency downgrade Tesco's long term credit to 'junk' status.

Tesco's (TSCO) stock value has plummeted, down nearly -45.8% compared to a year ago.

Currently, Tesco could potentially be facing shareholder lawsuits both in the UK and abroad.

Earlier this month a lawsuit was filed in the US against Tesco and former executives accusing the parties of allegedly misleading investors.

In the UK, Stewarts Law firm is preparing legal action on behalf of investors that will allege that management 'knew or were reckless' over the misrepresentation of profits.

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