‘The court will resolve the matter’: Super Retail chair clears air on legal feud

Super Retail’s departing chair has told investors that the Rebel Sport owner was unable to settle a legal battle with two former executives, which is also being investigated by the corporate watchdog, as they were “seeking very significant damages” from the $4 billion retailer.

In her last annual meeting as the company chair, Sally Pitkin told investors on Thursday that the company had tried to resolve the matter with the former employees before court proceedings commenced.

“We were unable to do so. We tried to settle on reasonable terms because, as you would appreciate, that’s an appropriate risk management strategy for the company to undertake,” she said.

Sally Pitkin steps down as chair of Super Retail Group on Thursday, but is still facing allegations made by two former employees in a Federal Court lawsuit.Credit: Janie Barrett

Pitkin, also named as a party in proceedings, referred investors to the company’s bombshell ASX statement in April that revealed the impending legal battle along with allegations of an affair between chief executive Anthony Heraghty and HR boss Jane Kelly. There were also bullying claims and alleged corporate law breaches that were expected to form the basis of a $30-$50 million lawsuit.

“That review and investigations [conducted by the board of directors] concluded that the allegations were not substantiated,” Pitkin said.

“The court will resolve the matter, and I know that the court is working assiduously to expedite that resolution.”

Amelia Berczelly is one of two former lawyers for the retailer alleging their careers were derailed by the fallout from the affair. The other is former chief legal officer Rebecca Farrell who is also taking legal action against the $4 billion retailer.

Berczelly is alleging the retailer pushed her to the verge of suicide and bankruptcy as punishment for bringing to light allegations of an affair.

“I believed that SRG (Super Retail), Mr Heraghty and Ms Pitkin wanted to push me to kill myself, destroy my reputation, and bankrupt me as a means to silence me and punish me for being a whistleblower against them and Mr Heraghty’s partner, Jane Kelly,” Berczelly wrote in an affidavit submitted in the Federal Court as part of Farrell’s proceedings against the retailer.

In the affidavit, Berczelly said she and Farrell had “had made offers to settle the matter for materially less sums, and any offers made on a joint basis arose solely out of Mr Heraghty insisting that I join Ms Farrell’s mediation on 17 April 2024”.

She also alleged that Super Retail’s ASX statement that the board’s investigation and conclusion that the allegations were unsubstantiated was inaccurate and misleading because she “knew that the board had not investigated a number of the allegations”.

Farrell, who was also company secretary at the retailer, began proceedings after her employment was terminated in May. She says a settlement agreement was reached, and is seeking court orders to force Super Retail to honour their agreement. Otherwise, she is seeking damages, penalties, compensation and an apology from the company, Heraghty, Pitkin and other directors for being allegedly bullied, harassed and sacked from her job after raising complaints of serious corporate governance breaches.

The Australian Securities and Investments Commission (ASIC) confirmed last week it was looking into the matter.

The company’s share price was down nearly 4 per cent in afternoon trading after the conclusion of its annual general meeting and after issuing a trading update that E&P retail analyst Kade Madigan said showed the group’s overall sales had decelerated.

More than 17 per cent of shareholders who voted at the AGM voted against approving the performance rights to Heraghty.

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