Tesco chairman quits as profits crumble by 92%

Eight senior executives remain suspended on full pay although Tesco stressed that nobody had personally benefited from the scandal
Eight senior executives remain suspended on full pay although Tesco stressed that nobody had personally benefited from the scandal
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The chairman of Tesco is to stand down after a collapse in the supermarket chain’s half-year profits and an increase in the bill for a book-keeping scandal from £250 million to £263 million.

Britain’s biggest food retailer today revealed that its statutory pre-tax profits collapsed by 92 per cent to £112 million, with sales falling in every part of the business except for Tesco Bank.

Sir Richard Broadbent, chairman, expressed “profound regret” over Tesco’s difficulties and said he would leave as soon as a successor could be found: “My decision reflects the important principle of accountability on behalf of the board.”

An independent investigation by Deloitte, the accounting firm, into Tesco’s books has concluded that financial irregularities go back at least two years but has