Mr Price faces R20m in potential exposure amid supplier probe
JSE-listed retailer Mr Price said on Thursday it faces potential financial exposure of between R10m and R20m in a probe into a relationship between two senior managers and one of its suppliers.
Should this exposure materialise, the group would enforce its contractual rights against the supplier, Mr Price said in a statement. “The group believes that this is an isolated issue and continues to demand the highest standards of compliance from its associates and partners.”
It said earlier in September that it had suspended two employees for an alleged breach of the company’s code of conduct, but that the allegations did not relate to any financial reporting irregularities, nor did they involve any executive or non-executive directors.
Mr Price said on Thursday that the position articulated in its earlier statement remained, and that as the investigation was ongoing, it could not comment further.
Gryphon Asset Management portfolio manager Casparus Treurnicht said on Thursday that the breakdown in the supplier relationship may have wider consequences than the R10m to R20m mentioned.
“We are not entirely sure what type relationship this supplier has with Mr Price, but from their wording it sounds like a pretty negligible issue,” Treurnicht said.
At 12pm Mr Price’s share price was down 1.09% to R156.08.