Super Retail strikes back at law firm as workplace battle escalates

Super Retail has sought to suppress confidential, sensitive and inflammatory material that could be aired in a potential court case, as two female executives lodge Fair Work claims.

Super Retail chief executive Anthony Heraghty at a Rebel store. Picture: Jane Dempster

Scandal-plagued Super Retail Group is waging a battle across two courtrooms as the bullying-and-sex scandal that erupted in April intensifies and it tries to suppress potentially commercially confidential, sensitive or inflammatory material from being made public.

The launch of Fair Work Commission and Federal Court cases, within a fortnight, marks a significant acceleration in the workplace crisis now swirling around the well-known retailer, owner of brands such as Supercheap Auto and Rebel. It also risks lifting the veil on what has occurred at Super Retail in the past year, with potentially sensational claims from a number of former executives now turned whistleblowers.

The saga has focused attention in particular on chief executive Anthony Heraghty, Super Retail’s boss since 2019, who stands accused by some whistleblowers and law firm Harmers of having engaged in a secret affair with the company’s head of human resources, Jane Kelly.

The Australian revealed on Monday some female executives who made the string of damaging allegations of improper workplace behaviour at Super Retail Group, including claims of the secret affair, have left the company.

Two of those employees, former company secretary and chief legal officer Rebecca Farrell and co-secretary Amelia Berczelly, filed an action in the Fair Work Commission on Tuesday, citing contraventions involving the dismissal of their employment.

In an attempt to cauterise any damage to Mr Heraghty and limit publicity of statements made under protection of privilege through court proceedings, Super Retail headed to the Federal Court on July 12 to argue its case before Justice Wendy Abraham.

Much of what was said remains suppressed, and in brief court orders issued by Justice Abraham she assigned pseudonyms to two of the respondents.

However, court documents obtained by The Australian reveal a list of other respondents to the Federal Court case launched by Super Retail who can be named, including Harmers chairman Michael Harmer and Harmers team members Emma Pritchard and solicitors Jenee Smith and Justin Handisurya. Long-time Harmers media adviser Anthony McClellan was also named.

Two weeks ago, lawyers for Super Retail Group and Harmers appeared briefly before the Federal Court at a procedural hearing where it is believed case documents, as well as any transcript, fell under suppression orders and therefore cannot be revealed.

Super Retail alleged earlier this year it believed it was the victim of a “shakedown” by lawyers acting for aggrieved staff as they aired damaging and sensational allegations about workplace behaviour and began negotiations for a settlement.

It is not known what was argued before the court, only that it was a procedural hearing and that Super Retail is believed to have asked that some sensitive or confidential information not be revealed by the parties.

It is believed lawyers for Super Retail, the retail giant with annual sales of $4bn and retail operations under the banners Rebel, Supercheap Auto, BCF and Macpac, sought court orders to have certain matters relating to the looming workplace court case kept from public view. From that court appearance two respondents were given pseudonyms. It is unknown who they are or their part in the workplace saga.

In April, Super Retail was plunged into scandal when it outed itself as being accused of a long list of wrongs by several anonymous employees, with these whistleblowers represented by Harmers. The claims included allegations of an undisclosed, illicit, affair between Mr Heraghty and then head of HR Ms Kelly, as well as bullying, excessive workloads and improper use of company travel.

Ms Kelly was not one of the executives who made the complaints, and she left Super Retail late last year after working for the retailer for more than seven years.

Insiders at Super Retail had described the legal threats which carried potential costs and damages as high as $50m, as a “shakedown” and it is believed at boardroom level Super Retail took the strategic decision to be pre-emptive and strike first, as it faced a looming damaging court case.

The battle between the aggrieved female staff, represented by Harmers, and Super Retail quickly played out in public, with claims and counterclaims mostly centring on the sensational allegation of a sexual relationship between the CEO and head of HR.

The Super Retail board conducted its own investigation into the issues and claims, including the sexual relationship allegation, but found no evidence, and denied it and the other workplace allegations made by Harmers.

Despite Super Retail revealing in April it was the subject of allegations, and of negotiations over a settlement stretching back to late last year, Harmers is still yet to file any legal case or lawsuit.

Harmers stood by its claims and revealed in late April it was representing four executives, and that an “external informant” had come forward with new details of the alleged affair, claiming its board was aware of the secret relationship as early as December last year.

Harmers, a specialist workplace law firm that has carved out a niche in sexual harassment cases, claimed a third party, not connected to Super Retail, had come forward with “key evidence” of the affair.

Harmers did not return calls from The Australian. A spokesman for Super Retail declined to comment.

Mr Heraghty will face the investment market and media in August when the company hands down its full-year results.