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Rotten Tescos

Tesco-harlescott-shrewsburyThe news today has wiped 11% off the value of the business. http://www.bbc.co.uk/news/business-29306444

The crux of the problem was within the accounting as detailed by this quote. Many will rightly ask where the auditors, PWC, were to be found when this was occuring

Cantor Fitzgerald said it had already warned last November that it believed Tesco was “demanding/taking money from suppliers trading accounts”.

“We believed Tesco had been overstating its UK commercial gross profit by £200m+ per annum, via deducting monies from suppliers’ trading accounts or extending payment dates without notice,” it added.

If i have read this right, they have effectively accounted invoices not paid on time as well as various unilateral clawbacks as profits during any quarter

I may have to look a little closer into this seedy business but if that is how I read it then heads must roll. Not least at PWC.

And should we not forget the suppliers in this unseemly business? It has long be known that Tescos treat their suppliers in a very dismissive manner.

One cant help coming back to that well known saying. “What goes round comes around ”

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