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This was published 7 months ago

Rebel Sport owner faces escalating legal threat

By Colin Kruger and Jessica Yun

The board of Rebel Sport owner, Super Retail Group, is facing an escalating crisis as Harmers Lawyers says more current and former employees have approached it about a potential lawsuit amid allegations of an undisclosed relationship involving the group’s boss, Anthony Heraghty, as well as governance issues and bullying claims.

Since Super Retail’s Friday disclosure that it faced a $50 million lawsuit by two employees over allegations of bullying, victimisation and adverse treatment, Harmers said it “had been approached by a number of present Super Retail employees very concerned about crucial governance issues”.

Super Retail Group chief executive Anthony Heraghty.

Super Retail Group chief executive Anthony Heraghty.Credit: Ben Searcy

Super Retail also owns Supercheap Auto, Macpac and BCF.

Harmers said it was acting for four clients who are whistleblowers against Super Retail as defined by the Corporations Act. The legal firm said it had been approached by more current and ex-employees with similar concerns and that any action would extend to Heraghty personally as chief executive.

“Super Retail is well aware that this is not a ‘shakedown’, but a justifiable legal claim for damages, being deliberately misrepresented,” it said.

“We are confident that other current and former SRG staff will support our clients’ claims.”

On Monday, Harmers revealed that a third party, not associated with the retail group, had also approached it “with key evidence about the previously undisclosed personal relationship between Heraghty and his former direct report, and Super Retail’s former chief human resource officer Jane Kelly.”

According to the lawyers, the retailer denied any relationship between the two as recently as this month.

“When Harmers pointed out that it had clear proof of an intimate relationship, and thus a significant unreported conflict of interest, Super Retail’s position immediately shifted,” Harmers said.

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“As of last Friday, Super Retail revealed to certain of its staff that a relationship does now exist between Mr Heraghty and Ms Kelly – but Super Retail now alleges only from January 2024. However, even from that date, such a relationship carried significant conflicts of interest.”

Harmers said one of its clients made a whistleblower complaint last November via the retail group’s internal process, referring to the relationship between Heraghty and Kelly and its impact on governance issues.

According to the law firm, the complaint was removed from the integrity officer and the head of risk and handed to an HR manager who reported directly to Kelly.

Super Retail has been approached for comment.

‘None of the allegations are substantiated’

On Friday, the group told the ASX that its board had conducted an independently advised investigation into the suggestions of an undisclosed relationship and bullying and concluded that “none of the allegations are substantiated.”

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Super Retail said it would defend any court proceedings in via its lawyers from Allens.“As these matters are expected to be the subject of litigation, the group does not intend to make any further comment at this time,” it said.

“The group will update the market on this matter as appropriate.”

Any legal action from Harmers is expected to be delayed while the law firm reviews the new information it has received.

Harmers criticised Super Retail’s Friday statement, saying it amounted to victimisation of the whistleblowers and had caused them additional damage.

“One of our clients has supplied Super Retail with a draft of a proposed Statement of Claim. That document raises a range of serious governance and conduct issues within Super Retail. The document has been selectively misrepresented in Friday’s ASX announcement by Super Retail,” Harmers said.

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Original URL: https://www.smh.com.au/business/companies/rebel-sport-owner-faces-escalating-legal-threat-20240429-p5fne1.html