CEO and the ‘$50m shakedown’: Super Retail Group accuses execs of plotting false tryst suit
Super Retail Group is holding urgent legal talks and says it’s the victim of a ‘shakedown’ by unproven claims from two executives about improper behaviour by the retailer’s CEO.
Shopping giant Super Retail has launched an astonishing pre-emptive attack on a $30m-$50m legal claim from two executives it believes is designed to “shake down” the company, with accusations chief executive Anthony Heraghty had a secret affair with his human resources chief.
In a sensational day of claim and counter-claim, the owner of Rebel Sport and Supercheap Auto revealed the legal complaint on Friday morning to the ASX, which accused Mr Heraghty and former HR boss Jane Kelly of having a clandestine relationship and creating a toxic work environment.
The company, which is one of Australia’s biggest retailers with annual revenues of almost $4bn, faces a scattergun of other claims by two unnamed individuals working in its corporate team. They include inappropriate company travel, bullying, victimisation, restrictive access to information, poor record keeping and excessive workloads.
The company said an external investigation launched in December had cleared Mr Heraghty and Ms Kelly of having an affair and any claims of bullying.
Ahead of a snap meeting with the company’s lawyers, sources close to Super Retail on Friday accused the employees behind the legal action of using “shake down” tactics.
Mr Heraghty has led Super Retail Group for seven years, and been part of it for nine, having joined from underwear brand Bonds. Last year his remuneration package totalled $4.15m.
The suing employees – understood to be high-ranking female executives – hit back via workplace specialist law firm Harmers, saying Super Retail’s attempt to get ahead of their legal claim included “major inaccuracies”.
Ms Kelly left Super Retail in November after seven years in the role as chief of human resources and is believed not to be one of the executives making the allegations. In a statement to the ASX, the retailer said it was trying to determine if Harmers had lodged documents, including a statement of claim or served the company with court papers, in the wake of its stunning, but as yet unproven, allegations about behaviour at the Super Retail head office in Strathpine, Brisbane.
“The group expects the employees to jointly claim loss and damage in the range of $30m to $50m,” the statement said. “Super Retail Group will defend any court proceedings in relation to the allegations.”
Harmers, a specialist in the field of workplace issues including sexual harassment and bullying, first approached Super Retail in December with a letter alleging a range of improper behaviour – including an intimate relationship between Mr Heraghty and Ms Kelly. It was followed by threats of legal action accompanied by claims of loss and damages of $30m to $50m.
Internally, Super Retail believes it is the victim of baseless allegations dressed up as potent legal threats and wielded to trigger a payday for the law firm and its clients.
Rather than wait for court documents to land, it made the decision to alert the stock exchange.
“It’s like blackmail or shake down,” a source close to Super Retail management said. The offensive strategy adopted by the company is reflective of Mr Heraghty’s management style. He has commented in the past about planning for a crisis and anticipating problems.
“I like to be ahead of things. I sort of like to think that I have got a bit of an idea of what is coming around the corner and can kind of prepare yourself for it because then you have to prepare an organisation for it,” he told a podcast hosted by the Australian Retailers Association in June 2021.
Mr Heraghty said Covid-19 – during which many of Super Retail’s almost 700 stores were forced to close – taught him “how quickly things can go south”. “You really need to use your imagination to start building scenarios out to brace yourself for the worst case and work back from there,” he said.
“Now that is just a style thing, that is how I like to think about problems. The need for speed and need to be unequivocal.
“I think we have a perception that leadership is about having all the answers and telling people what to do. I think sometimes it is more powerful to do the opposite and you learn that the hard way.
“You may be the most senior person in the room, but that doesn’t make you the smartest.”
The board of Super Retail, led by chairman and former director of the scandal-plagued Star Entertainment casino company Sally Pitkin, has investigated the claims – supported by independent external advisers – including the allegation of a relationship between Mr Heraghty and Ms Kelly, and found no evidence.
“The board’s review and investigations concluded that none of the allegations are substantiated,” Super Retail said in the statement to the ASX. “Super Retail Group will defend any court proceedings in relation to the allegations. Law firm Allens is acting for the group.
“As these matters are expected to be the subject of litigation, the group does not intend to make any further comment at this time. The group will update the market … as appropriate.”
Within hours, Harmers hit back, stating it was acting for “several employees” of Super Retail, not two as claimed by Super Retail. “We can confirm that we are acting for several Super Retail Group employees,” it said in a statement. “In response to the ASX statement issued by Super Retail Group today, we believe it contains major inaccuracies. We have no further comment at this stage.”
Super Retail remained in contact with its lawyers and advisers through Friday as it awaited a statement of claim being lodged with the Federal Court.
Mr Heraghty grew up in Brisbane. His parents owned a John Deere machinery dealership. His first retail job was working in the book department of Myer.
According to Ms Kelly’s LinkedIn page, she left Super Retail in November and her public comments on other LinkedIn pages mostly relate to congratulating colleagues and other people employed in the HR industry on their achievements and promotions.
In one LinkedIn comment dating from three years ago she responds to a post from another Super Retail executive about an initiative called “I am here” which focuses on improving workplace culture and creating a “compassionate workplace for everyone to grow and support each other”.
More Coverage
Hidden detail hurting winemakers recovering from Chinese burn
Figures suggest the Chinese wine market is back with a bang for Australian exporters, but local winemakers say it’s a very different story on the ground.
Tough times ahead, IGA owner Metcash tells investors
Grocery, liquor and hardware wholesaler Metcash’s supermarkets posted relatively strong sales growth since July, although the pace was below some analyst expectations.