UK: MPs may quiz Tesco on profits error
- Credit: PA
Tesco executives may be hauled before MPs to explain the supermarket giant’s “stratospheric” error over its inflated profits guidance.
Adrian Bailey, chairman of Parliament’s Business, Innovation and Skills Committee, told BBC Radio 5 Live it was “unbelievable” that a company of Tesco’s size could get into such a mess.
He said bosses could be called before the committee to be grilled over the £250 million overstatement, with any inquiry likely to be extended to cover the wider UK grocery industry and its relationship with suppliers.
The UK’s accountancy watchdog, the Financial Reporting Council, has said it is monitoring the situation at Tesco closely but is powerless to do anything until the supermarket’s own investigation has been completed.
Tesco issued its fourth profits warning of the year on Monday in a bombshell statement that sent its shares to their lowest level in a decade.
You may also want to watch:
However, backing for the embattled chain came from an unlikely source today when Sports Direct International, which is controlled by Newcastle United owner Mike Ashley, placed a £43 million bet on the supermarket’s recovery.
The retailer has entered into a put option agreement over 23 million shares, representing a 0.3% stake in the supermarket business.
- 1 Suffolk school goes viral after teachers post TikTok dance
- 2 Man in hospital with serious injuries after Suffolk stabbing
- 3 Ipswich Town transfer rumour: Blues linked with 'ambitious move' for striker
- 4 Community in shock after stabbing on Suffolk estate
- 5 Former Town star's son scores to help Hartlepool secure dramatic return to EFL
- 6 Pub demolition plans generate 150-plus objections in a week
- 7 No starts, sarcastic cheers and a quick profit - A look back at Kieffer Moore's time at Town
- 8 Patient in 90s will fight Ipswich Hospital parking fine
- 9 Councils to be given powers to fine drivers £70
- 10 Couple launch smoked meat business after impressing at family BBQs
Sports Direct said: “This investment reflects Sports Direct’s growing relationship with Tesco and belief in Tesco’s long-term future.”