Tesco misled auditors to inflate results
Everyone is still laughing at Tesco as their woes continue apace. The latest is that, according to leaks, investigators from Deloitte and Freshfields have discovered that a number of execs at the supermarket deliberately misled auditors and accountants to try and hide their dismal financial results.
This is all revolving around the £250m accounting scandal and various sackings that Tesco have found themselves lumbered with.
So what's the skinny? Well, it is thought that Tesco booked supplier payments that were reliant on condition of them hitting sales targets - ones that they were never, ever going to meet. It seems like this practice has been going on for a while, but were increased just before Tesco's spectacular slump.
To make things worse, it looks like Tesco's South Korean wing has been selling the personal data of more than five million customers to insurance companies, which is likely to end in prosecution. Things are so toxic in that area that Tesco's Asian operations could be sold off. However, that can't happen while there's an investigation going on.
As a result, Tesco’s share price has fallen by 48% since the start of 2014.
Tesco are a complete shambles at the minute, but it is very, very difficult to feel sorry for them after they aggressively muscled out countless independent retailers out of the market over the years. So, in short - Haw Haw!
TOPICS: High Street News