More woes for Tesco as profits crash by 92%
October 24 , 2014
Tesco registered a 92% drop in profit to £112m as the retailer revealed a bigger accounting problem than earlier estimates.
The crash in pre-tax profits was caused both by the extent of the accounting mismatch and poor sales, and led to the departure of chairman Richard Broadbent.
The UK retailer said huge payoffs to ex-CEO Philip Clarke and Laurie McIlwee, the former finance director, would be withheld pending completion of an inquiry by Deloitte into rogue accounting practices.
Chief executive Dave Lewis who took over last month indicated that Tesco had lost its way and needed to get more in tune with its customers.