Asda Appoints Former Boss Leighton to Help Turn Struggling Grocer Around – BNN Bloomberg

(Bloomberg) — Asda has appointed former boss Allan Leighton as executive chair, as the struggling grocer looks to turn around its fortunes.

Leighton will succeed Stuart Rose, Asda said in a statement on Saturday. Rose, who joined the company three years ago, will remain on the board to ensure an orderly transition before stepping down, the company added.

“The potential for Asda now is significant, and my focus will be to work with the leadership team to help make Asda special for our colleagues and millions of customers,” Leighton said in a statement.

Leighton is returning after a previous stint when he helped transform the supermarket chain before it was sold to American giant Walmart Inc. in 1999. Since then, Leighton has held roles at numerous consumer businesses, including Canadian retailer Loblaw Cos. and the Co-Operative Group.

Private Equity

Leighton comes back to a much different Asda to the one he once oversaw. Since being bought by TDR Capital and the billionaire Issa brothers, Mohsin and Zuber, in 2021, the grocer has gone through a challenging period.

In June of this year, TDR acquired the 22.5% stake held by Zuber, giving the private equity firm majority control. Then, in September, Mohsin stepped aside from his executive role.

Earlier this month, Rose said the supermarket had “slightly lost the plot,” after he revealed another quarter of disappointing results and warned of a £100 million ($125 million) hit from the UK’s tax hikes and rising minimum wage. The warning followed similar statements from the likes of J Sainsbury Plc and Marks & Spencer Group Plc.

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