so pleased the CEO preempted the outrageous $50M 'shakedown'. On you, Heraghty!

CEO and the ‘$50m shakedown’: Super Retail Group accuses execs of plotting false tryst suit

Super Retail chief executive Anthony Heraghty will defend any court proceedings; former HR officer Jane Kelly, inset. Picture: Jane Dempster

• ByELI GREENBLAT

  SENIOR BUSINESS REPORTER
• 6:58AM APRIL 27, 2024

Shopping giant Super Retail has launched an astonishing pre-emptive attack on a $30m-$50m legal claim from two executives it believes is designed to “shake down” the company, with accusations chief executive Anthony Heraghty had a secret affair with his human resources chief.

In a sensational day of claim and counter-claim, the owner of Rebel Sport and Supercheap Auto revealed the legal complaint on Friday morning to the ASX, which accused Mr Heraghty and former HR boss Jane Kelly of having a clandestine relationship and creating a toxic work environment.

The company, which is one of Australia’s biggest retailers with annual revenues of almost $4bn, faces a scattergun of other claims by two unnamed individuals working in its corporate team. They include inappropriate company travel, bullying, victimisation, restrictive access to information, poor record keeping and excessive workloads.

The company said an external investigation launched in December had cleared Mr Heraghty and Ms Kelly of having an affair and any claims of bullying.

Ahead of a snap meeting with the company’s lawyers, sources close to Super Retail on Friday accused the employees behind the legal action of using “shake down” tactics.

Mr Heraghty has led Super Retail Group for seven years, and been part of it for nine, having joined from underwear brand Bonds. Last year his remuneration package totalled $4.15m.

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The suing employees – understood to be high-ranking female executives – hit back via workplace specialist law firm Harmers, saying Super Retail’s attempt to get ahead of their legal claim included “major inaccuracies”.

Ms Kelly left Super Retail in November after seven years in the role as chief of human resources and is believed not to be one of the executives making the allegations. In a statement to the ASX, the retailer said it was trying to determine if Harmers had lodged documents, including a statement of claim or served the company with court papers, in the wake of its stunning, but as yet unproven, allegations about behaviour at the Super Retail head office in Strathpine, Brisbane.

“The group expects the employees to jointly claim loss and damage in the range of $30m to $50m,” the statement said. “Super Retail Group will defend any court proceedings in relation to the allegations.”

Harmers, a specialist in the field of workplace issues including sexual harassment and bullying, first approached Super Retail in December with a letter alleging a range of improper behaviour – including an intimate relationship between Mr Heraghty and Ms Kelly. It was followed by threats of legal action accompanied by claims of loss and damages of $30m to $50m.

Internally, Super Retail believes it is the victim of baseless allegations dressed up as potent legal threats and wielded to trigger a payday for the law firm and its clients.

Rather than wait for court documents to land, it made the decision to alert disallowed.

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“It’s like blackmail or shake down,” a source close to Super Retail management said. The offensive strategy adopted by the company is reflective of Mr Heraghty’s management style. He has commented in the past about planning for a crisis and anticipating problems.

“I like to be ahead of things. I sort of like to think that I have got a bit of an idea of what is coming around the corner and can kind of prepare yourself for it because then you have to prepare an organisation for it,” he told a podcast hosted by the Australian Retailers Association in June 2021.