By Colin Kruger
Shares of Rebel Sport owner Super Retail Group soared to a record high on Thursday after reporting better-than-expected sales since June, but the big drama took place in court as the company battles to suppress explosive allegations implicating senior executives and its current chair.
The $3 billion retailer, which also owns Supercheap Auto, Macpac and BCF, was back before the Federal Court, where Justice Michael Lee handed down his judgment lifting suppression orders covering documents filed by its former chief legal officer and company secretary Rebecca Farrell.
The suppression order remains in place while Super Retail considers an appeal.
Super Retail chief executive Anthony Heraghty unveiled a strong start to the 2025 financial year as a legal battle alleging bullying and an undisclosed affair played out in court. Credit: Dan Peled
Farrell’s solicitors, Harmers Workplace Lawyers, and Super Retail have already revealed the allegations central to the legal claims. They include bullying, conflicts of interest, and corporate law breaches which centre around an alleged affair involving chief executive Anthony Heraghty and the company’s former HR boss Jane Kelly.
The retailer’s current chair Sally Pitkin was also implicated in the wrongdoing.
According to the statement of claim, staff had reported in an internal Pulse survey conducted by Culture Amp in October 2023 that they needed a leader “not encumbered by personal relationships or [who] is egotistical or creates a different class for himself and those close to him”.
In an executive team meeting to discuss the survey, the statement of claim alleges, a visibly angry Heraghty told the team: “If you’re not on the bus, then get off and go. You’re not welcome here.”
Other allegations in the statement of claim included a managerial meeting at which Heraghty “was screaming at them to such an extent that he was spitting at them”.
Farrell claims she was restricted from doing her job, including compliance with the Corporations Act, due to the issues with Heraghty and Kelly that extended to board level.
The allegations are separate to legal action by another of the retailer’s former senior legal officers, former company secretary Amelia Berczelly.
Super Retail has denied all of the allegations.
The details that Super Retail is seeking to keep suppressed relate to an alleged settlement deal with Farrell, which she wants executed by the court. Super Retail denies there was a settlement deal.
Justice Lee granted an order to keep details of the legal action suppressed until August 28 to give Super Retail time to appeal his decision.
He had earlier rejected Super Retail’s arguments for keeping these details suppressed and noted that a significant amount of information is already public.
“I have already discussed the unsatisfactory nature of the evidence, but one cannot help getting the impression that this argument is far more about what might be thought by the Super Retail parties to be convenient, reasonable, or sensible and preventing material entering the public domain which the [Super Retail] parties would prefer not to be disclosed,” Justice Lee said.
Former Super Retail chief legal officer Rebecca Farrell (left) and former senior lawyer and company secretary, Amelia Berczelly at the Federal Court last week. Credit: James Brickwood
Heraghty would not comment on Thursday about the cost of the legal battle.
The company shocked the market in April when it made an ASX announcement about the brewing battle and flagged allegations of the undisclosed relationship involving its CEO, and bullying claims that were expected to form the basis of a $50 million lawsuit.
Super Retail shares closed 6.2 per cent higher at $17.70 on Thursday, having reached a record of $17.99 earlier in the day, after the company reported a strong start to the 2025 financial year, with 3 per cent like-for-like sales growth (growth at stores which have been open for the whole year) for the seven weeks from July 1.
Super Retail also announced a fully franked final dividend of 37¢ per share and 50¢ special dividend, taking its cash return to investors for the year to more than $268 million.
For the 2024 financial year, the group reported record revenue of $3.9 billion, up 2 per cent, but rising costs sent its net profit down 9 per cent to $240 million.
Heraghty was cautious about reading too much into the improving numbers since the start of the new year, and whether it meant customers were upgrading their purchases.
“I wouldn’t suggest that basket value is [improving], but it does seem, as we’ve turned to the new financial year, a modest improvement in sentiment across the board. But I’d be very cautiously optimistic about that,” he said.
It certainly caught the eye of market observers such as E&P retail analyst Kade Madigan, who noted the improved sales momentum both in the June half and the current year-to-date.
“The [full-year] result was in line with expectations, however … the better-than-expected early trading should see consensus upgrades” to analyst forecasts, Madigan said.
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.