Super Retail Group sacks CEO Anthony Heraghty over new details about workplace relationship

Super Retail Group has sensationally dumped its chief executive after new information about a relationship he had with a co-worker came to light.

The company behind popular big-box retail brands Rebel, Supercheap Auto, BCF and Macpac told investors on Tuesday that Anthony Heraghty’s termination had been made with immediate effect.

“The board made this decision after receiving new information from Mr Heraghty regarding his relationship with the company’s former chief human resources officer,” the company said.

“In light of this new information, the board has concluded Mr Heraghty’s prior disclosures were not satisfactory.”

The move comes amid a long-running court feud between SRG and two former employees who claim Mr Heraghty’s relationship with former HR boss Jane Kelly created a toxic workplace environment.

Investors held off an immediate mass exodus amid the fresh wave of chaos at the top of the company in early trade, with the stock down just 2 per cent to $16.93.

SRG said it had “exercised its discretion” to lapse Mr Heraghty’s incentives, which includes all unvested incentives and vested but unexercised rights.

Chief financial officer David Burns has been appointed interim boss while the company starts a search for Mr Heraghty’s replacement.

Federal Court documents last year alleged Mr Heraghty had an illicit affair with Ms Kelly that created a toxic culture within the $3 billion listed company.

The court papers revealed allegations of an “unhealthy culture” that developed as a result of Mr Heraghty’s and Ms Kelly’s alleged conduct, with SRG’s former chair Sally Pitkin also heavily criticised.

A statement of claim lodged by SRG’s former chief legal officer and company secretary Rebecca Farrell alleged staff did not feel they could report concerns about a culture of bullying to the board.

This was because Ms Pitkin “is very close to the CEO and (Ms Kelly), and they feel chair Pitkin would somehow sweep such matters under the carpet”.

SRG staff who reported to or worked with Ms Farrell on several occasions from about May 2021 also made disclosures that they were under pressure and unable to do all aspects of their work.

This caused them stress and risks to their health and safety, it is alleged.

SRG earlier this year delivered its defence to the claims that contradicted Ms Farrell claims. The case is due to return to court this month.

The company warned in April last year that it was expecting legal proceedings to be filed by two workers and anticipated loss and damages of between $30 million and $50m.

The claims centred on the non-disclosure of the relationship between Mr Heraghty and Ms Kelly, inappropriate company travel, bullying, victimisation and adverse treatment, particular employees in the corporate team having unreasonable workloads, insufficient resources and restricted access to information, and unsatisfactory company record management.

At the time, SRG said the board had conducted a review and investigations into these allegations.

“The board was supported by independent external advisers. The board’s review and investigations concluded that none of the allegations are substantiated,” it said.

SRG on Tuesday did not disclose what new information about his relationship with Ms Kelly had come to light that justified Mr Heraghty’s immediate sacking.

E&P Financial Group retail analyst Kade Madigan said he was surprised about the timing of Mr Heraghty’s termination given how long it had been since the board’s investigations were initiated.

“In regard to the ongoing court cases, we note a number of subpoenas had been filed on September 10 and 11 with the court scheduled to re-adjourn on September 24,” Mr Madigan said.

“We had previously anticipated that SRG would host an investor day later in CY25 to update the market with a refreshed longer-term strategy.

“We would expect this will still occur; however the timing will now be dependent upon the appointment of a new long-term CEO.”