The corporate regulator has launched Federal Court proceedings against former Super Retail Group chief executive Anthony Heraghty, alleging he engaged in a romantic relationship with the company's HR boss Jane Kelly and misled the board and the market about the nature of their connection.
The Australian Securities and Investments Commission (ASIC) announced last month it was suing Heraghty for allegedly breaching his directors' duties and providing misleading information to the board and financial market about his relationship with Kelly.
Court documents publicly released detail that ASIC alleges Heraghty and Kelly were “in a relationship of a romantic or intimate nature” between February 2022 and at least July that year. According to the statement of claim, on or around July 12, 2022, Heraghty's then-wife discovered text message exchanges on his mobile telephone between him and Kelly, and he told his then-wife “words to the effect that he had been engaging in an intimate relationship with Kelly”.
Heraghty, who was sacked from Super Retail last September, was fired with immediate effect after the board said it received new information from him regarding his relationship with the company's former chief human resources officer. The board cut his $8.7 million bonus and later withheld a $620,760 cash bonus, stating that his prior disclosures about the relationship were “not satisfactory”.
Super Retail, which operates Rebel Sport, BCF and Supercheap Auto, has already spent more than $40 million in a bitter legal battle with its two former top lawyers who claimed they were bullied and harassed over a matter centred on Heraghty's alleged relationship.
Analysis
Why This Matters
- The case tests director disclosure obligations under Australian corporate law, with implications for how executives must report personal relationships that could create conflicts of interest.
- Shareholders and the market rely on accurate disclosures from company directors; alleged misleading statements undermine confidence and could affect Super Retail's governance reputation.
- The ongoing legal costs — already exceeding $40 million — highlight the financial and operational toll of leadership disputes on a major Australian retailer.
Background
Super Retail Group is a major Australian retailer operating well-known chains including Rebel Sport, BCF and Supercheap Auto. Anthony Heraghty served as chief executive until his dismissal in September last year. The board acted after receiving what it described as new information about his relationship with Jane Kelly, the former chief human resources officer. ASIC subsequently launched civil proceedings alleging breaches of directors' duties and misleading conduct. Separately, Super Retail has been embroiled in litigation with two former senior lawyers who alleged they were bullied and harassed in relation to the handling of the matter involving Heraghty's relationship.
Key Perspectives
ASIC (regulator): The corporate watchdog is pursuing enforcement action, arguing that Heraghty's failure to properly disclose the relationship and his alleged misleading of the board and market constitute serious breaches of director obligations.
Super Retail board: The board has taken a firm stance, dismissing Heraghty and withholding significant bonuses after concluding his prior disclosures were not satisfactory, demonstrating a commitment to governance standards.
Anthony Heraghty's position: No response from Heraghty has been detailed in available sources, but the Federal Court proceedings will be his avenue to contest the allegations.
What to Watch
- The Federal Court's scheduling of substantive hearings and any submissions from Heraghty's legal team.
- ASIC's further evidence, particularly around the timing and content of Heraghty's disclosures to the board.
- The ongoing separate legal action involving Super Retail's former lawyers, which may intersect with facts in the ASIC case.