Super Retail chair Sally Pitkin has made her first public comments about the workplace scandal

In her first public comments about the scandal which has rocked Super Retail, chairman Sally Pitkin says the company tried to settle with two former executives-turned-whistleblowers.

Super Retail Group chief Anthony Heraghty, and former executives and whistleblowers Rebecca Farrell and Amelia Berczelly.

Super Retail Group chair Sally Pitkin says the company tried to settle “on reasonable terms” with its two former executives-turned-whistleblowers over the workplace and sex scandal that has engulfed the retailer, but failed to reach a “reasonable” deal.

Making her first public comments on the issue while addressing a question from a representative of the Australian Shareholders Association at the company’s annual general meeting, Ms Pitkin said the allegations raised by the two former employees had been fully investigated by the board and could not be substantiated.

Her comments came as Super Retail, owner of Supercheap Auto, Rebel, BCF and Macpac, issued a trading update which showed slowing sales growth and an uptick in stock clearance – which has pinched margins – to make way for new seasonal products.

Sales at its largest business, Supercheap, have deteriorated and the trading update for the first 16 weeks of fiscal 2025 was below some analysts’ expectations – which weighed on the share price.

Ms Pitkin, who steps down as chair at the end of the Super Retail AGM on Thursday, spoke briefly about the current action launched by former chief legal counsel Rebecca Farrell and former co-company secretary Amelia Berczelly but said she was limited in what she could say as it was before the courts.

Super Retail’s Sally Pitkin steps down as chair of the group today. Picture: Peter Wallis

“As you would appreciate, this matter is before the court, And therefore, I am very limited in what I can say,” Ms Pitkin said in response to a question from the ASA.

“All of these matters that are claimed in the proceedings now before the court have been reviewed and investigated by the board. And that review and investigations concluded that the allegations were not substantiated.

“Now, the court process will resolve the matter.”

She said Super Retail attempted to resolve the matter before it went to court but was unsuccessful.

“We tried to resolve the matter with the employees, former employees, before the court proceedings were commenced, and we were unable to do so,” Ms Pitkin said.

“We tried to settle on reasonable terms because, as you would appreciate, that’s an appropriate risk management strategy for the government to undertake. But the court will resolve the matter.”

It is the first time Ms Pitkin has spoken publicly about the scandal which broke in April when Super Retail outed itself in an ASX statement to report it was the subject of expected workplace litigation that could cost it $30m to $50m.

The sensational allegations included the nondisclosure of a sexual relationship between CEO Anthony Heraghty and the former head of HR, Jane Kelly, inappropriate company travel to further that affair, bullying, victimisation and adverse treatment and unsatisfactory company record management.

After the AGM, The Australian approached Ms Pitkin and Mr Heraghty for comment on the workplace scandal and court action.

Ms Pitkin declined to comment further after the meeting. Mr Heraghty also declined to comment and said he has not been distracted from running the business by the allegations.

“I think is fairly obvious from today’s proceedings (that I have not been distracted). I have a business to run,” he said.

While all resolutions at the AGM were easily passed by shareholders there was a 17.4 per cent vote against the resolution to award performance rights to Mr Heraghty.

Super Retail chief executive Anthony Heraghty. Picture: Jane Dempster

Documents later lodged with the Federal Court by the whistleblowers alleged Super Retail’s whistleblower system was “significantly compromised” by Ms Pitkin and another unnamed board member to suppress staff complaints of the alleged affair between its CEO and human resources boss. emails and board minutes were deleted, the court documents claim.

A concise statement of claim by Ms Berczelly, who is suing the retailer, claimed Mr Heraghty on more than one occasion attempted to “bully, intimidate and coerce” her into amending the minutes of a December board meeting and a related board paper.

Ms Berczelly feared that certain executives had been replaced, and their duties changed, to suppress whistleblower reports of the alleged affair, court documents claim.

Super Retail has consistently denied the claims.

Meanwhile, before the AGM Super Retail provided a trading update which revealed slowing sales across its business and as a result the share price initially sunk as much as 3 per cent.

The company said that for the first 16 weeks of the new financial year total group sales were up 2 per cent and same-store sales up 4 per cent. Comparable store sales for Supercheap Auto was up 4 per cent, Rebel up 2 per cent, BCF up 6 per cent and Macpac up 10 per cent.

Mr Heraghty said the outlook continued to be volatile.

Of concern to analysts and investors was a deceleration of sales growth since July.

E&P analyst Kade Madigan said sales growth of 2 per cent for the first 16 weeks of 2025 was down from 3 per cent growth between July and August.

“On a simple equal week-weighted basis, sales growth in weeks eight to 16 must have decelerated to around 1 per cent,” Mr Madigan said.

Supercheap Auto’s sales had slowed to 4 per cent from 6 per cent, and sales were slowing at Macpac. However, sales appeared to have accelerated at Rebel and BCF.

Supercheap Auto sales have slowed since July.

Margins looked to have been pinched although there was no explicit commentary made on gross profit margins. But Rebel’s gross margins were negatively impacted by 140 basis points with the ongoing impact of the new loyalty program. Super retail also noted a modest unfavourable effect on margins from its new loyalty program as well as additional promotional activity to prepare for the new season.

“The outlook for the consumer remains uncertain, given ongoing cost of living pressure on household budgets,” Mr Heraghty said.

“The group’s customer value proposition, the strength of the four core brands and the size of our customer loyalty club membership base means Super Retail Group remains well positioned to perform in retail market conditions where customers are carefully managing their spending and prioritising value-for-money purchases.

“As always, the group’s first half result will be highly dependent on trading in the peak Christmas period.”