Tesco chairman in dramatic resignation after profits fall by 91% in six months

Tesco chairman Sir Richard Broadbent quits amidst revelations of a £263million black hole in the supermarket company’s accounts.

16:36 23 October 2014

Sir Richard Broadbent has resigned from chairing Tesco as it was revealed that the supermarket giant’s half-year profits dropped by 91.9per cent.

Its £263million accounting scandal was worse than initially predicted because it may have been going on for year.

Britain’s biggest retailer said that its pre-tax profits slumped from £1.3billion last year to just £112million this year. Experts say that this is because millions of customers switched to rivals because Tesco failed to deliver on price, service, and quality.

Meanwhile, police are expected to launch a criminal investigation over £263million accounting scandal. Bosses recently admitted it may have been overstating profits for years.

Following the news, share prices nose dived by 11p this morning, representing a drop of £4billion in market value this year alone. In April, shares were worth just below £4, but are now available for just £1.70.

New Chief executive Dave Lewis said: 'We know that we have got a lot of work to do. We know what it is we need to do to turn the business around.'