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Oct 6, 2014
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Struggling Tesco supermarket takes delivery of private jet

Oct 6, 2014

LONDON, England - British grocer Tesco has taken delivery of a corporate jet worth $50 million (31.31 million pounds) just days after announcing it had overstated its profits by 250 million pounds, the Financial Times reported on Saturday.

The Gulfstream 550 long-range jet was ordered early last year during the tenure of former chief executive Philip Clarke who was ousted in July, the paper said.

Britain's biggest retailer was strongly criticised by shareholders last year when it revealed it was running a fleet of four executive jets, despite falling sales at home and troubles abroad.

A Tesco spokesman declined to comment on the new jet but said: "All aircraft operated by Tesco are in the process of being sold."

Last month Tesco's new boss Dave Lewis said the company needed to make changes in the way it operates after an accounting scandal that led to first-half profits being overstated wiped 3 billion pounds from its stock market value.

"Turning our business around will require change in our culture, as well as in our processes and our brand proposition," he said in an email to staff.

Britain's financial watchdog has launched a full investigation into the accounting error, which effectively brought about Tesco's third profit warning in two months.

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