Tesco appoints new chairman after profit scandal

UK supermarket giant Tesco has appointed John Allan as its new chairman in the aftermath of its £263 million profit “black hole” scandal.

John Allan has been appointed the new chairman of beleaguered British supermarket Tesco

Allan, the former chairman of Dixons Carphone, will takeover from from Sir Richard Broadbent on 1 March, following a series of senior management changes.

It was revealed in October last year that the British retailer had launched an investigation into its £263m profit overestimation, suspending a number of key executives including its beer, wine and spirits (BWS) director Dan Jago.

Shortly afterwards, the Serious Fraud Office launched a criminal investigation, while accountancy firm Deloitte and law firm Freshfields carry out internal investigations.

Tesco’s chief executive Philip Clarke, finance director Laurie McIlwee and head of UK operations Chris Bush also exited the company in light of the investigation.

Its new chairman Allan, who will be earning £650,000 a year, told the Guardian: “I’m very pleased to be taking on this role at such a critical moment for the business.”

His appointment comes at a time when the supermarket chain is undergoing massive changes, closing 43 stores and scrapping 9,000 jobs across the country.

It was speculated in November last year that all eight suspended Tesco executives, including Jago, faced dismissal.