You will simply not believe what Tesco wasted £31m on

Amid profit warnings in 2013, Tesco made a questionable purchase.

Philip Clarke, then CEO of the troubled supermarket, bought a $50m (£31m) Gulfstream G550 corporate jet, despite having just issued the first profit warning in 20 years at Tesco.

Sales and profits of the UK’s largest retailer are falling, while shareholders, such as Warren Buffett’s Berkshire Hathaway, have seen the value of their shareholdings halve.

The jet, which Tesco has never used, is now up for sale, along with other aircraft; a Hawker 800 and two Cessna Citations.

Two weeks ago it emerged the retail giant had overstated its profits by £250m. It is in the process of being investigated by the Financial Conduct Authority.

Retail expertise

Tesco has also brought in directors from other top retailers to help manage the company, after being criticised for having no retail experience among its board.

The supermarket has hired Mikael Ohlsson, former chief executive of Ikea, and Richard Cousins, boss of catering group Compass, as non-executive directors at £70,000 each.

Will the new directors help? What do you think? Let us know in the comments below or on Facebook.

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Readers' comments (2)

  • Anonymous

    Is that not a nothing story. The plane was ordered I believe 2 years ago and they were contractually obliged to take delivery. Nothing at all to do with their profit warning.

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  • The plane was ordered in 2013, shortly after Tesco issued its first profit warning

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