Tesco boss John Allan quits: Britain’s biggest supermarket concerned behaviour claims are ‘distraction’
John Allan, the chair of Tesco, will quit his role fearing accusations about his behaviour are becoming a “distraction”.
The former president of the Confederation of British Industry (CBI), which has been embroiled in serious accusations of sexual misconduct including rape, will step aside from Britain’s biggest supermarket.
In a trading update late on Friday afternoon, the supermarket stood by the chairman saying there had been “no findings of wrongdoing” and his tenure was nearing its end, with the search for a new chair already underway.
This comes after Allan strongly denied three out of four alleged incidents of inappropriate behaviour first reported in the Guardian.
It said “three of these allegations are vigorously denied by John, for the other John unreservedly apologised for the comment he made. “
It added one incident related to its AGM and Tesco “immediately instigated an extensive review of the allegation”.
“The scope of the review has been considered by external legal counsel, who advised that the steps were reasonable and appropriate in the circumstances.”
It was reported last month Tesco was on the search of a “heavyweight” replacement for Allan.
In a statement from John Allan about his departure, he said: “It is with regret that I am having to prematurely stand down from my position as Chair of Tesco Plc following the anonymous and unsubstantiated allegations made against me, as reported by the Guardian.
“These allegations are utterly baseless, as the internal procedures undertaken by Tesco prove.
“Tesco undertook an “extensive internal review” which included inviting Tesco employees and ex-employees to come forward on an anonymous basis if they had concerns about my conduct. Tesco also conducted outreach to those who attended the meeting where the incident allegedly happened, and video footage of the meeting has also been reviewed.
“There is no evidence of any wrongdoing at that time or at any stage of my Chairmanship at Tesco and I remain determined to prove my innocence.”
His temporary replacement Byron Grote said: “John has made a valuable contribution to Tesco during his 8 years as Chair.
“He has successfully led the Board through the turnaround and Covid whilst helping to rebuild the business. While we have received no complaints about John’s conduct and made no findings of wrongdoing, these allegations risk becoming a distraction to Tesco.
“We are well advanced in our search for a new Chair and will make an announcement in due course.”
John Allan’s tenure at Tesco
Allan served nearly a decade at Tesco, taking over as chairman in March 2015, in the aftermath of one of Tesco’s worst periods ever as the supermarket had been accused in December 2014 of inflating its profits by £250m.
Over the past seven years, the chairman helped to stabilise the company whilst rebuilding its market share.
The end of his tenure comes as the supermarket is facing a new wake of challenges, mostly fueled by the cost-of-living crisis and a changing landscape for the supermarket sector – in which major players such as Asda and Morrisons have been snapped up by private equity groups.
Allegations against John Allan
By Laura McGuire – 09 May
Allan, the Guardian claimed, allegedly touched the bottom of a senior female Tesco staff member in June 2022, at the firm’s annual general meeting (AGM).
He also allegedly touched the bottom of a staff member at under-fire lobby group the Confederation of British Industry (CBI) at a dinner in 2019, when he was then CBI president.
Sources told the Guardian that 74-year-old Allan made inappropriate remarks on both those occasions, as well as similar comments to other female CBI staff in November 2019, and in 2021.
Allan said he accepted he had told a woman a dress “suited her figure” in 2019 but said it was a “misjudged way of seeking to cheer someone up”, the Guardian said.
He denied the 2021 allegation, which the Guardian said involved him making comments about a woman’s bottom and that her dress was making it hard for him to concentrate.
The Guardian said some of the women told them Allan’s actions had offended them and that they believed his behaviour to be sexual harassment.