Tesco finds huge black hole in accounts

tescoMajor British grocer Tesco unexpectedly announced that it had overstated its profits to the tune of £250 million.

It has launched an inquiry into the accounting mess and in the meantime has suspended four senior executives until the inquiry is complete.

Those four executives are believed to include Tesco UK’s MD, Chris Bush.

Deloitte will head up the inquiry and as a result of the mess Tesco will deliver its next financial results in late rather than early October.

Dave Lewis, who took over the helm of chief executive officer earlier this month said that the company had uncovered a serious problem and acted to address it.

Shares in the giant grocer fell on the unexpected news by as much as 10 percent.

It is the third profit warning Tesco has made this year and it is believed the overstatement is caused to accounting anomalies in the food division.