Some of the biggest investors in British supermarket chain Morrisons have reportedly issued stern warnings to the company's senior management on foot of lowered profit forecasts which were announced last month.
Investor and media attention has focused on Morrisons chairman Ian Gibson and chief executive Dalton Phillips after they abruptly changed the company's challenge by pledging to take on rivals Aldi and Lidl.
Speaking to the Financial Times, one top 10 shareholder at Morrison said: “Management are in the last chance saloon. We have had discussions with the group and have warned them that something needs to be done.”
Another top 10 investor said told the FT: “We are very unhappy with the company. We are not saying more than that at this stage, but the results and the ill-thought out strategy, which has changed many times, speaks for itself.”
Britain's fourth largest supermarket chain declined to comment on these media reports, but people close to the supermarket insisted shareholders were mainly supportive.
Scrutiny of Morrisons' management team comes as executives at rival Tesco also face pressure from investors as the slump in its performance is due to be laid bare tomorrow.
© 2014 - European Supermarket Magazine by Enda Dowling
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