Source : THE AGE NEWS

Documents filed with the Federal Court have detailed explosive allegations of an affair between Super Retail boss Anthony Heraghty and its then HR chief Jane Kelly, which triggered a multimillion-dollar legal battle and corporate turmoil implicating the group’s board.

In the statement of claim filed this week by Amelia Berczelly – one of two former lawyers for the retailer who allege their careers were derailed by the fallout from the affair – it is alleged that Heraghty threatened her and her colleague, Rebecca Farrell, during a mediation session in April last year.

“Heraghty had threatened the applicant and Farrell at the mediation through their solicitors, including by stating words to the effect: ‘whistleblowers never fare well’,” the document stated.

Super Retail chief executive Anthony Heraghty.Credit: Dan Peled

Farrell, the former chief legal officer, is the other applicant taking legal action against the $3 billion retailer, its former chair Sally Pitkin, and Heraghty.

Both Berczelly and Farrell are pursuing a settlement against Super Retail in the Federal Court, claiming that the alleged affair, conducted while both Heraghty and Kelly worked for the company, led to workplace bullying and breaches of the Corporations Act.

Farrell’s updated statement of claim alleges that Heraghty and Kelly were seen late at night at the latter’s five-star Brisbane hotel, The Calile, in June 2023 by Berczelly and another company employee.

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.

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.Credit: James Brickwood

“Heraghty and Kelly had acted in a manner that was very suspicious and suggestive that they were engaged in an intimate or personal relationship that had not been disclosed to the board,” the document said.

The document also alleges that Heraghty’s executive assistant (EA) told a whistleblower at the group that Heraghty’s wife had accessed his mobile in March 2023 and discovered an affair had been ongoing with Kelly for around three years.

The EA disclosed to the whistleblower that they had observed and recalled “various unusual transactions”, including “business travel and hotels that were indicative of the relationship.”

The documents also revealed a complaint by another executive that, despite her imminent departure from Super Retail at the end of 2023, Kelly had attended a business trip to Germany and London with Heraghty.

The documents allege that other senior executives at Super Retail were aware of the affair, which made it difficult to escalate complaints about Kelly’s alleged bullying of senior staff.

“There is no safe space to speak up,” a member of the executive leadership team told a Pulse Survey in October 2023.

The head of the BCF business, Paul Bradshaw, allegedly observed Heraghty’s hand on Kelly’s thigh in April 2022 at a function attended by Super Retail executives, according to Farrell’s affidavit.

Super Retail, which owns Rebel Sport, Supercheap Auto, BCF and Macpac, previously stated it had conducted an investigation with external help and “none of the allegations were substantiated”. It said at the time that the legal proceedings would be “vigorously defended”.

Super Retail has been approached for comment.

Berczelly alleges the retailer pushed her to the verge of suicide and bankruptcy as punishment for bringing to light allegations of an affair.

Farrell claims her access to the whistleblower system was later removed, with Pitkin’s approval, after a second whistleblower complaint was received.

That complaint specifically referred to concerns about a culture of bullying by Kelly and Heraghty, concerns over the alleged affair between Kelly and Heraghty and questionable expenses, and the close relationship they both had with Pitkin.

The legal brawl became public one year ago when Super Retail rocked the market with an ASX announcement warning of pending litigation by two employees, which could leave it with a $50 million bill.

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