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tesco shelf destructs ; Boss quits after group's profits plunge by 92% [Mirror (UK)](Mirror (UK) Via Acquire Media NewsEdge) TESCO was left reeling yesterday as its chairman quit and a profit scandal deepened. Sir Richard Broadbent bowed to pressure after revelations that the supermarket giant had fiddled its accounts, sparking the worst crisis in its 95-year history. It originally said half-year profits had been "overstated" by Pounds 250million. But yesterday it admitted the black hole was even bigger, at Pounds 263million, and went back at least two years. The discovery it cooked the books came as Tesco confirmed that profits fell 92% in six months to August 23, from nearly Pounds 1.4billion to just Pounds 112million. The accounting error compounded a sales slump, with half-year takings in UK stores falling another 4.6%. New chief executive Dave Lewis, seven weeks in the job, vowed to revive Britain's biggest supermarket. "I am not naive about the fact the company has some challenges," he said. "We were the best supermarket for customers and we will be again." Mr Lewis, a former top executive at grocery giant Unilever, refused to comment on whether he will have a multi-billion-pound war chest to win back customers with big price cuts. But he did hint that parts of the business could be sold to raise money, which could include some of its over-seas arms. Jobs at its HQ and other offices could go to slash costs. Tesco is also selling its fleet of private jets, including a Pounds 30million Gulfstream which has just arrived. Eight executives have been suspended over the accounting irregularities, being investigated by the Financial Conduct Authority. Yesterday's results cut Pounds 900million more off the firm's stock market value, which has more than halved in a year, as the share price fell another 6.5%. Rating agencies Fitch and Moody's last night downgraded Tesco's credit status. Moody's said it could hit junk level depending on the FCA's findings. The Serious Fraud Office is still monitoring the situation. [email protected] (c) 2014 ProQuest Information and Learning Company; All Rights Reserved. |