The CEO, his alleged romance with the HR manager and the big BCFing mess

2 hours ago 2

Opinion

September 16, 2025 — 5.24pm

Where was Coldplay when we needed them?

This is the obvious question for Super Retail shareholders after chief executive Anthony Heraghty’s answers during an investigation into an alleged relationship with former HR boss Jane Kelly was put under its own spotlight this week and warranted his immediate sacking.

Super Retail boss Anthony Heraghty has been sacked after misleading the board about his alleged relationship with former HR boss Jane Kelly (inset).

It’s a pity that the board did not have this vital information in April last year when they made the bombshell announcement that the company would soon face a $50 million lawsuit triggered by this undisclosed alleged relationship. And the matter would be “vigorously defended”.

“The board’s review and investigations concluded that none of the allegations are substantiated,” Super Retail chair Sally Pitkin said at the time.

It now reads like a damning verdict for a board that will almost certainly be collateral damage now this bombshell has exploded in their lap.

The pressure has been building. Super Retail, which owns Rebel Sport and BCF, spent more than $11 million on its legal defence of this matter as of June 30. It is due to go before the court next year.

The legal bill gives an indication of the scorched earth legal strategy Super Retail has pursued against its two former legal bosses, Amelia Berczelly and Rebecca Farrell, who allege their careers were derailed by the fallout from the alleged relationship.

We can only assume that the legal battle itself is one of the “related matters” that the board will now “carefully consider”. Along with the investigation that led the board to so vigorously back their chief executive, Heraghty.

It does not appear to be a coincidence that this information came to the board’s attention late last week – just days after Farrell’s legal team issued subpoenas to various parties compelling them to give evidence and produce documents.

These documents are due to be handed over next week.

‘Even though the allegations read like an episode of Married at First Sight, they raise important governance questions that the board must answer.’

Dean Paatsch, founder of governance advisory firm Ownership Matters

Former Super Retail Group chief legal officer Rebecca Farrell (left), former company secretary Amelia Berczelly (centre) and their lawyer, Michael Harmer, are locked in a legal battle with the retailer.

A crucial point is Berczelly and Farrell’s allegation that Heraghty and Kelly conducted a relationship while they worked together at Super Retail.

Super Retail’s statement did not clarify the board’s understanding of what actually happened, but Heraghty’s sacking points us in a direction that does not bode well for them or the legal battle – and it could prove costly for the group.

What we can say for sure is that many questions raised by the allegations – that Super Retail wanted to sweep under the carpet – must now be answered.

This includes allegations of inappropriate use of company funds by Heraghty and Kelly to further the alleged relationship, and how the alleged relationship allegedly led to bullying claims by senior executives.

There are also alleged breaches of the Corporations Act, and a questionable board response to whistleblowers who were revealing the corporate turmoil, as well as Kelly’s role with Super Retail following her departure.

“Even though the allegations read like an episode of Married at First Sight, they raise important governance questions that the board must answer,” Dean Paatsch, founder of governance advisory firm Ownership Matters, said last year when the matter became public.

“When did the board know of [an alleged] relationship between the CEO and the head of HR? Did the head of HR return as a consultant to advise the board on the selection of the new chair, non-executive directors or otherwise after the board had received whistleblower complaints about her relationship with the CEO?”

Sally Pitkin stepped down as chair of Super Retail Group.

Pitkin has stepped down as chair, but five board members, including chair Judith Swales, have been on the board while these events played out and face shareholders at the group’s annual meeting in a month.

They will now have to contemplate an end to this legal battle with Berczelly and Farrell at a price that will almost certainly compound the financial pain for investors.

Farrell and Berczelly might finally get the settlement they wanted, but it will be at a significant price. Berczelly alleges the retailer pushed her to the verge of suicide and bankruptcy as punishment for bringing to light allegations of the alleged relationship.

No financial settlement could repair this damage.

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