Supercheap Auto boss sacked after workplace allegations

It’s been a rough week at the top for one of Australia’s biggest retail groups. The parent company behind Rebel Sport, BCF, Macpac and Supercheap Auto has sacked its chief executive and managing director, Anthony Heraghty, after fresh details emerged about an alleged workplace relationship with the company’s former HR boss.

Super Retail Group told the ASX on Tuesday that Heraghty had been fired “with immediate effect” and would lose millions in bonuses.

“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 its statement.

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

The demise of a business leader

Heraghty, who had been with the business since 2015 and CEO since 2019, won’t be walking away with the lot. The board stripped him of about $8.7 million worth of share rights, although the Sydney Morning Herald reports he’ll still pocket a $620,760 cash bonus this month.

The fallout from the scandal leaves more than a leadership gap. The company is also tangled up in an ongoing court case that’s been hanging over Super Retail for more than a year. Back in 2024, two former senior execs – ex-chief legal officer Rebecca Farrell and company secretary Amelia Berczelly – launched legal action after they blew the whistle on what they claimed was an undisclosed relationship between Heraghty and then-HR boss Jane Kelly.

According to court documents cited by the Herald, the women alleged they were punished for raising concerns, claiming the fallout led to bullying, misuse of company funds, and a “nothing to see here” approach from the board.

At the time, Super Retail flatly denied the allegations. “The board’s review and investigations concluded that none of the allegations are substantiated,” the company said in April 2024.

But Tuesday’s announcement suggests the board is now rethinking that position. It has already set aside $11.3 million to cover the Federal Court case and said it would “carefully consider” the implications of the new revelations.

Share price drops

Investors didn’t love the news either.

Super Retail’s shares dropped more than 4 per cent on Tuesday to $16.52.

“Clearly, new information has come to light,” E&P retail analyst Kade Madigan told the Herald. “However, we are surprised around the timing, given how long it has been since these investigations were initiated.”

Corporate watchdog ASIC has also been sniffing around after an emergency whistleblower disclosure was made to Assistant Treasurer Stephen Jones last year, leading to compulsory staff interrogations about how the complaints were handled.

For now, the retailer’s CFO David Burns has been tapped as interim CEO while the hunt begins for a permanent replacement.

Citi analysts told clients they expect the company to look externally, though Burns and other brand chiefs – including Supercheap Auto’s Benjamin Ward and Rebel’s Gary Williams – may be in the running.

Shareholder groups are calling for answers

“Shareholders will want clarity on what investigation has been undertaken, why these issues have only come to light now, and how the board is strengthening governance and oversight,” Australian Shareholders’ Association boss Rachel Waterhouse told the Herald.

Super Retail, valued at just under $4 billion, now faces a mess of legal battles, a leadership vacuum, and a reputational clean-up. For a company whose brands are built on Aussie weekends of sport, camping, and fishing, it’s got one heck of a boardroom fight on its hands.

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