Tesco to dismiss all eight suspended directors

Tesco will say goodbye to all eight of the directors it suspended in the wake of the £264m accounting scandal, according to reports.

Three of the eight executives are already understood to have formally exited the company according to the Financial Times.

The scandal saw billions wiped off Tesco’s market value.

Kevin Grace, group commercial director, Carl Rogberg, UK finance director, and John Scouler, UK food commercial director, all left the company on Wednesday, the FT reports. None have been accused of any wrongdoing.

The five remaining directors of the so-called “Cheshunt Eight”, named after the location of Tesco’s head office, are all also expected to leave the company as early as next week, according to the Independent. Further suspensions are also likely, the newspaper says.

Tesco chief executive Dave Lewis is also said to be looking for new accountants, after PwC failed to spot the accounting error.

The extent of the error has meant Tesco practically erased its entire first-half profits after it had to spend £500m on dealing with the accounting hole.

The seriousness of the oversight is underlined by the launch of a criminal investigation by the Serious Fraud Office.

It is all bad news for the retailer, which will continue the busy Christmas period with a seriously weakened senior management team.

 

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Readers' comments (1)

  • "Tesco chief executive Dave Lewis is also said to be looking for new accountants, after PwC failed to spot the accounting error."

    Where's he going to look? The Big Four accountancy firms are all as rotten and corrupt as each other.

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