By Colin Kruger
The chief executive of Rebel Sport owner Super Retail Group has been accused, in documents filed with the Federal Court by a former executive of the $3.4 billion retailer, of billing the company for expenses and international travel that furthered an undisclosed relationship.
A statement of claim, lodged by former chief legal officer and company secretary Rebecca Farrell on July 29, also accuses Anthony Heraghty of screaming at staff and being part of a culture of bullying at the retailer.
Former Super Retail Group chief legal officer and company secretary Rebecca Farrell at the Federal Court in Sydney ahead of a hearing last week.Credit: Dominic Lorrimer
The statement of claim alleges a volatile environment among the senior executives at the group after an internal review revealed complaints of a culture where employees did not feel free to speak out.
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”.
Super Retail chief executive Anthony Heraghty will present the group’s full-year results this month. Credit: Dan Peled
Two internal whistleblower complaints were lodged last year, in November and December, against Super Retail Group. The complaints alleged a “culture of bullying” by Heraghty and the group’s then HR manager Jane Kelly, and referenced an “intimate relationship” between the two.
“The CEO’s executive assistant had resigned in October 2023 due to the relationship, after having been informed by the CEO’s ex-wife of same and observing questionable expenses, travel arrangements and the like in relation to the CEO and CHRO [chief human resources officer] Kelly,” the statement of claim said.
The whistleblower complaints also made allegations relating to “expense claims incurred to further the affair”, including an international work trip. Kelly left the group last year.
Super Retail – which also owns Supercheap Auto, Macpac and BCF – denied the allegations in April when it flagged a potential $50 million lawsuit in a statement to the ASX.
“The board has conducted a review and investigations into these allegations,” the company said. “The board was supported by independent external advisers. The board’s review and investigations concluded that none of the allegations are substantiated.”
The legal battle began last week when Farrell, the former chief legal officer and company secretary, commenced proceedings in the Federal Court against Heraghty and chair Sally Pitkin following the termination of Farrell’s employment in May this year.
A directions hearing on July 31 revealed that the parties are in dispute about whether a settlement was reached over the termination.
Farrell is seeking damages, penalties, compensation and an apology from Heraghty and Pitkin, who is stepping down as chair after the group’s October shareholder meeting.
Farrell is claiming to be a whistleblower who was allegedly bullied, harassed and sacked from her job after raising complaints of serious corporate governance breaches.
“The statement of claim is consistent with the allegations contained in our announcement to the ASX on 26 April 2024,” Super Retail Group said on Friday. “We do not accept the untested allegations that are set out in the statement of claim. As previously announced, Super Retail Group will vigorously defend the court proceedings in relation to these matters.”
Super Retail is due to announce its full-year results on August 22.
The result is expected to be a strong one. JP Morgan recently upgraded earnings forecasts for the 2025 and 2026 financial years with sales growth across all categories.
But the court proceedings represent a dark cloud over its outlook.
“Whilst the sales trajectory is expected to be resilient for the retailer, current court proceedings against the company by a former employee acts as an overhang for the stock, posing risk to key management changes and disruption to sales execution,” JP Morgan said.
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