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    Super Retail Group (SUL)

    I've been following your comments on SUL. You haven't mentioned their announcements in April, July and September regarding workplace litigation and federal court proceedings. This is in addition to Fin Review and other press reports regarding bullying by the people at the top. Personally, I'm not usually keen on stocks with legal proceedings overhanging them. However, does your lack of mention of the issues indicate that you think they are not relevant from an investment point of view? Please keep up your interesting commentary on this and other stocks - it's appreciated and enjoyed here.

    Answer

    Hi Mike,

    As you say SUL , the owner of brands like Rebel Sport and Supercheap Auto, is involved in a workplace litigation case initiated by its former Chief Legal Officer, Rebecca Farrell and another senior employee. The allegations include corporate governance issues, breaches of whistleblower protections under the Corporations Act, harassment, and workplace safety violations. There are also claims of victimization after raising concerns, including a conflict of interest involving the CEO and a senior executive.

    • They are seeking damages, penalties, and an apology, while Super Retail has denied the allegations and plans to defend the case.

    The claims, combined with potential liabilities range from $30-50 million plus potential reputation damage. Last FY SUL reported a net profit after tax of $240.1 million from sales of 3.88 billion, hence if they lose it would certainly hurt.

    However, we don’t believe this case, while far from trivial, is driving the share price, that will come mainly from operational performance, although we do understand your trepidation.

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    Super Retail Group Ltd (SUL)
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