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Coles’ incoming boss named by ACCC

The incoming boss of Coles supermarkets, John Durkan, has been named in documents as playing a key role in allegedly mistreating Coles suppliers.

According to the Sydney Morning Herald, Wesfarmers was refusing to comment on the future of Durkan late on Monday, and seems to be standing by him.

Coles may be facing fines up to $200 million in the claim lodged by the ACCC with the federal court, where Durkan is placed at the centre of an ''orchestrated and organised'' campaign to pump up Coles pre-tax earnings by as much as $30 million.

The campaign allegedly demanded payments from tier 3 suppliers as a rebate for the supermarket group improving its supply chain.

ACCC chairman Rod Sims said the extent of the demands and alleged unconscionable conduct by Coles surprised even him.

''I think it's fair to say the allegations we have made amount to more than we thought we would find,'' Sims said on Monday.

''We have very much treated this as being an organised and orchestrated campaign by Coles.''

It is alleged Durkan, who will take the reins in July, approved a plan to demand payments from 200 suppliers as part of Coles' Active Retail Collaboration program in 2011.

The ACCC claims in its court documents that Durkan had no reasonable basis for telling suppliers the rebates reflected the value of the supply chain changes. In fact no details on how the payment figure was reached were provided.

 

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