Rebel Sport owner Super Retail Group warns of court claim for up to $50m

The $3 billion company behind some of Australia’s best-known retail brands including Rebel Sport and Super Cheap Auto is bracing to defend a likely multi-million dollar case against the company involving its chief executive.

But Super Retail Group, which took the unusual step of disclosing the expected legal case before papers had been lodged in court, will defend the allegations it says have already been investigated by its board.

The company on Friday forewarned the ASX of expected legal proceedings against it, adding it expected claims of a relationship between chief executive Anthony Heraghty and the former chief human resources officer — who is not one of the two employees behind the legal case — not being disclosed. It expects the claim to be for up to $50 million.

The case is also expected to involve allegations of bullying and victimisation, adverse treatment, some corporate team members having unreasonable workloads, insufficient resources and access to information being restricted and unsatisfactory company record management.

The allegations are understood to have first been made to the board late last year. The company says the joint claims for loss and damage are expected between $30m and $50m and would defend any court action.

Law firm Harmers Workplace Lawyers, representing the aggrieved staff, is yet to file a claim. But the firm, which describes itself as “one of Australia’s largest and multi-award winning employment ... and industrial law firms”, took issue with the Super Retail Group statement to the ASX.

“We can confirm that we are acting for several Super Retail Group employees,” Harmers said in a statement. “In response to the ASX statement ... we believe it contains major inaccuracies. We have no further comment at this stage.”

It’s understood Super Retail Group considers the legal threat without merit and any legal action would have to provide clear justification for its existence.

Super Retail Group told the ASX that its internal investigation by the board did not find any of the allegations were substantiated. It is still waiting for further, specific information.

“The board has conducted a review and investigations into these allegations,” the company said.

“The board was supported by independent external advisers. The board’s review and investigations concluded that none of the allegations are substantiated.”

Super Retail Group is chaired by Sally Pitkin, who has a masters of laws, and was until late 2022 the chair of the Australian Institute of Company Directors’ governance committee. Dr Pitkin has been a Super Retail Group director since 2010 and the chair since 2017.

Mr Heraghty has been chief executive since early 2019, replacing now-Metcash chair Peter Birtles, and a Super Retail Group executive since 2015.

Super Retail Group has been listed on the ASX since 2004 but was founded in 1972 by Reg Rowe.

Legal firm Allens is acting for the company. At $30m-$50m, it’s understood the quantum of the claim expected to be made is one of the greatest in Australian corporate history.

Alongside its market-leading car care and sport and leisure brands, Super Retail Group also operates Macpac and BCF.