Tesco appoints a new chairman

Published: Tuesday 17th February 2015 by The News Editor

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Tesco has appointed a new chairman who will take up his post at the troubled supermarket next month.

John Allan will replace Sir Richard Broadbent on March 1.

Mr Allan is currently on the boards of electrical retailer Dixons Carphone and Royal Mail, but will step down from those posts when he takes up his role at the country’s largest supermarket.

Sir Richard announced his resignation last October after a £263 million accounting blunder involving rebates to suppliers highlighted practices going back a number of years.

The fall-out from the affair led to the suspension of eight executives, as well as a shake-up of Tesco’s commercial practices that partly caused a £500 million profit warning in December.

The accounting blunder is being investigated by the Serious Fraud Office.

Under Tesco’s new chief executive Dave Lewis, who was appointed last September, the supermarket has cut jobs, introduced price cuts across hundreds of lines, and said it would close 43 loss-making stores. It has also scrapped plans to build 49 more shops.

Mr Allan said: “I’m very pleased to be taking on this role at such a critical moment for the business and look forward to working with the new executive team and the board.”

Mr Allan will be paid £650,000 a year as part of a three-year contract with Tesco.

He is also chairman of property company Barratt Developments and payment processing firm Worldpay, but is expected to continue in those roles.

Published: Tuesday 17th February 2015 by The News Editor

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