Asda: Issa brother to step back and hire new chief executive
Mohsin Issa, one half of the billionaire family duo which owns Asda, has confirmed he will be stepping back from the day-to-day running of the business.
In a shock move, Mr Issa told the BBC he was carrying out a “reset” at the grocer before appointing a chief executive.
The businessman said he was “here for the long haul,” despite the supermarket navigating a £5bn debt pile.
In the rare interview, Issa also dismissed rumours of a spat between him and his brother and Asdo co-owner Zuber.
He said: “We talk to each other probably two or three times a day. We’ve been very, very privileged. We have been on a journey and we have got a long way still to go.”
Last month, it was reported that Zuber Issa was mulling a sale of his 22.5 per cent stake in the grocery giant.
The brothers took control of Asda in a debt-fuelled £6.8bn swoop back in 2021.
A string of controversies have followed since. Most recently it was unveiled its Big Four accountant EY quit as the grocer’s auditor last summer.
An Asda spokesperson told City PM: “In a letter last summer, EY confirmed that they would not be able to undertake the enlarged audit – taking into account the acquisition of the EG UK&I business and the significant increase in scale and complexity of the group within the timetable to issue their audit opinion for the year ended 31 December 2023. We notified investors about this on 8 August 2023.”
MPs have also raised concerns over the group’s leverage and sprawling ownership model, as well as suggestions it was using Jersey-based vehicles for tax purposes.