Tesco aims to rebuild trust with new recruits

Tesco has announced that it has hired two new non-executive directors in a move to “rebuild trust” in the supermarket chain.

Mikael Ohlsson, the former CEO and president of IKEA, and Richard Cousins, CEO of the Compass Group will join the board on November 1.

Tesco chairman Sir Richard Broadbent commented on the move: “I am delighted to welcome Mikael and Richard to the Board and know that their broad skills and experience will be a real asset to the Company in the coming years.

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“Mikael and Richard have been updated on and are wholly supportive of the steps being taken by the new management team to rebuild trust in Tesco and to focus all the resources of the business to deliver value to our customers.”

It was reported last month that Tesco had identified a £250 million overstatement in its expected profit for the first half of the year, largely due to the accelerated recognition of commercial income and delayed accrual of costs.

It said that following an investigation into the supermarket operator’s food business, profits for the six months to 23 August were overstated by an estimated £250 million.

Some of this impact includes in-year timing differences. It is now looking into the extent of these issues and what impact they will have on the full year.

According to Reuters, four Tesco employees have been placed on leave while the investigations continue.

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