Super Retail Group has terminated its group managing director and CEO Anthony Heraghty, with immediate effect, after receiving new information regarding his relationship with the company’s former chief human resources officer. The decision marks a dramatic end to a tenure that had been overshadowed by ongoing legal battles and workplace culture allegations.
The board concluded that Heraghty’s prior disclosures were not satisfactory, given the new information, according to an ASX announcement released on Tuesday morning. The dismissal represents the culmination of a corporate governance crisis that has engulfed the $3.2 billion retail giant for more than a year.
Board Acts on “Unsatisfactory” Disclosures
The retail powerhouse behind Supercheap Auto, Rebel Sport, BCF, and Macpac brands moved swiftly after receiving new information from Heraghty regarding his relationship with the company’s former chief human resources officer. The board determined his previous explanations fell short of required corporate governance standards.
Super Retail Group Ltd has dismissed Chief Executive Officer Anthony Heraghty
Chief financial officer David Burns has been appointed interim CEO as the company, which operates the Supercheap Auto, Rebel, BCF and Macpac brands, searches for Heraghty’s replacement. The appointment provides continuity during what promises to be a challenging transition period.
The termination carries significant financial consequences for the dismissed executive. The board has exercised its discretion to lapse Heraghty’s incentives, which include all unvested incentives and vested but unexercised rights, effectively stripping him of potential bonuses and share benefits.
Jane Kelly Super Retail Group Connection Exposed
The relationship at the centre of the controversy involves former chief human resources officer Jane Kelly. Jane Kelly joined Super Retail Group in July 2016 as Chief Human Resources Officer (CHRO) from BT Financial Group, where she served as Human Resources and Corporate Affairs Director.
Jane Kelly former Chief Human Resources Officer at Super Retail Group
Federal Court documents obtained by The Nightly revealed allegations of an “unhealthy culture” that developed as a result of Mr Heraghty’s and Ms Kelly’s conduct, painting a picture of workplace dysfunction at the highest levels of management.
The relationship became public knowledge through legal proceedings filed by former employees. The dramatic move comes amid a long-running court feud between SRG and two former employees who claim Mr Heraghty’s relationship with former HR boss Jane Kelly created a toxic workplace environment.
Jane Kelly brought extensive experience to her role, having previously held senior positions at major Australian institutions, including Westpac and St. George Bank. Her departure from Super Retail Group preceded the current crisis by several months.
Legal Battles and Workplace Culture Claims
The Super Retail Group CEO Anthony Heraghty’s dismissal follows more than a year of legal challenges and internal investigations. The alleged relationship first became public last April, after two former employees filed a lawsuit against Super Retail Group, Heraghty and the company’s former chair, claiming they were dismissed after raising concerns that the relationship was causing a toxic workplace and corporate governance issues.
A statement of claim lodged by Super Retail Group’s former chief legal officer and company secretary Rebecca Farrell allege staff did not feel as though they could report concerns about a culture of bullying to the board. These allegations painted a troubling picture of internal governance failures.
The legal proceedings included serious workplace allegations:
- Claims of unreasonable workloads for corporate team members
- Allegations of restricted access to information and resources
- Concerns about inappropriate company travel arrangements
- Reports of victimisation and adverse treatment of employees
The company filed a defence in June, and the case is ongoing, indicating the legal ramifications may continue despite Heraghty’s departure.
David Burns Steps Into Interim Leadership Role
David Burns joined Super Retail Group in December 2012 in the role of Chief Financial Officer (CFO). David has overall responsibility for the finance, investor relations, and property and store improvement portfolios. His extensive experience within the organisation positions him well for the interim CEO role.
Burns brings valuable continuity during this period of uncertainty. David holds a degree in Economics from the University of Sydney, and is a FCPA. His financial expertise will be crucial as the company navigates potential legal costs and reputational challenges.
The search for a permanent replacement begins immediately, though the company has not provided a timeline for completion. The board faces the challenge of finding a leader capable of restoring stakeholder confidence while maintaining operational excellence across the group’s retail brands.
Share Price Impact and Financial Consequences
Super Retail Group shares responded negatively to the announcement, though the decline was more modest than some analysts expected. Investors held off an immediate mass exodus amid the fresh wave of chaos at the top of the company in early trade, with the stock down just 2 per cent to $16.93.
Super Retail Group Share Price
The timing proves particularly challenging given the company’s recent financial performance. Heraghty’s total remuneration for FY25 was $3.32 million which included $810,177 in performance rights. His dismissal comes after a record revenue performance by the group in FY25, although statutory net profit fell 8 per cent to $222 million due to lower margins and higher finance costs.
Current market metrics show:
- Share Price: $16.71 (as of market close Tuesday)
- Market Capitalisation: $3.89 billion
- 52-Week Range: $12.06 to $17.60
- Trading Volume: 729,434 shares
Having struggled for much of the past 12 months, Super Retail shares engineered a strong comeback alongside the broader market rebound in early April. The CEO dismissal threatens to derail this recovery momentum.
Corporate Governance Crisis Echoes Broader Trends
The Super Retail Group situation reflects a broader pattern of executive departures over relationship disclosure failures. Similar cases have emerged across multiple industries, highlighting increasing board scrutiny of executive conduct.
This trend extends beyond Australian borders. Recent months have seen corporate governance crises affect major multinational companies, with boards taking increasingly firm stances on disclosure failures and workplace relationship policies.
The WiseTech Global leadership upheaval earlier this year demonstrated how quickly governance issues can derail even successful technology companies. These cases underscore the critical importance of transparent leadership practices in maintaining investor confidence.
Corporate governance experts suggest the current environment demands enhanced disclosure protocols and clearer policies around workplace relationships, particularly between executives and direct reports.
Retail Sector Challenges Mount
The leadership crisis emerges as Australia’s retail sector faces significant headwinds. Consumer spending pressures and economic uncertainty have challenged even established operators.
The Australian fashion retail industry is facing ongoing turmoil. Several major brands have entered administration or liquidation in recent months. Super Retail Group’s strong market position across automotive, sporting goods, and outdoor categories provides some insulation from these broader sector challenges.
The company’s diversified brand portfolio offers defensive characteristics:
- Supercheap Auto: Market-leading automotive accessories and parts
- Rebel Sport: Dominant sporting goods retailer
- BCF: Leading boating, camping and fishing specialist
- Macpac: Premium outdoor apparel and equipment
This diversification may help maintain operational stability during the leadership transition period.
Future Outlook and Recovery Path
Super Retail Group faces the dual challenge of restoring governance credibility while maintaining competitive momentum across its retail operations. The board’s decisive action in dismissing Heraghty signals a commitment to addressing cultural and compliance issues.
Key priorities for interim CEO David Burns include:
- Stabilising executive team confidence and morale
- Maintaining operational excellence across all brands
- Managing ongoing legal proceedings effectively
- Conducting a comprehensive CEO search process
- Rebuilding stakeholder trust and market confidence
The company’s strong market positions and financial resources provide a foundation for recovery. Still, the company pleases passive income investors, with management declaring a fully franked dividend of 64 cents per share. That’s set to be paid out on 16 October.
Industry analysts will closely monitor upcoming quarterly results and management commentary for signs of operational impact from the leadership upheaval.
Conclusion: Governance Accountability Takes Centre Stage
The dismissal of Super Retail Group CEO Anthony Heraghty represents more than an isolated executive departure. It demonstrates how seriously modern boards view disclosure failures and workplace relationship management.
For Jane Kelly, Super Retail Group connections and the broader governance implications, this case establishes clear precedents about executive accountability. The swift board action, despite potential operational disruption, sends strong signals about prioritising compliance over continuity.
As David Burns guides the company through this transition period, investors and stakeholders will be watching closely for evidence of cultural change and strengthened governance practices. The ultimate test will be Super Retail Group’s ability to emerge from this crisis with enhanced credibility and sustained operational performance.
The retail giant’s recovery journey begins now, with the challenge of proving that decisive governance action can coexist with commercial success in Australia’s competitive retail landscape.
