SYDNEY: Australia's corporate regulator said on Monday it would sue the former chief executive of Super Retail Group, accusing him of misleading the board and the market about an alleged relationship with a senior executive.
Anthony Heraghty was sacked as CEO by the retailer's board in September last year after it concluded he had inadequately disclosed the alleged relationship with the company's former head of human resources, Jane Kelly.
The Australian Securities and Investments Commission (ASIC) said it was taking Heraghty to court because his conduct breached his directors' duties and exposed Super Retail to "foreseeable risks of harm".
Heraghty did not immediately respond to a request for comment sent through LinkedIn.
The risks included potential damage to the company's reputation, complaints and litigation, regulatory action and harm to its share price and shareholders, the regulator said.
"ASIC alleges Mr Heraghty put himself in a position where his personal interests conflicted with his duties to Super Retail Group and that he failed to properly disclose and manage that conflict," ASIC Chair Sarah Court said in a statement.
"This case is not about private relationships, but whether a director properly disclosed and managed conflicts of interest and met their duties to the company and shareholders."
ASIC said it was seeking declarations of contravention, financial penalties and disqualification orders.
Heraghty became chief executive of Winning Group, a privately owned kitchen and appliance retailer, in July. Winning is preparing for an Australian IPO, local media have reported. The company did not immediately respond to a request for comment from Reuters.
ASIC alleged Heraghty supervised Kelly and participated in decisions affecting her employment, remuneration, incentives and redundancy package despite their alleged relationship.
Heraghty also participated in board and committee discussions of complaints about the scandal and provided or authorised information released to the board and market about the alleged relationship that was misleading, ASIC said.
Super Retail, which owns popular chains such as Supercheap Auto, Rebel Sport, BCF and Macpac, also faced legal action brought by two former employees who alleged they were harassed after raising whistleblower complaints about the alleged relationship. The cases were settled in September 2025. - Reuters
