Asda’s efforts to recruit a new chief executive are at risk of stalling as headhunters struggle to convince retail bosses to take on the role at the debt-laden supermarket.
City sources have said Asda is “back to square one” in its effort to replace Mohsin Issa despite the offer of a multimillion-pound contract.
Since tasking City headhunter Spencer Stuart with leading a search for his replacement, industry sources have claimed Asda has approached “a whole conveyor belt of people who have turned it down”.
A failure to recruit a new chief executive recently led to Lord Rose taking the helm at Asda, which came after Mr Issa’s accelerated departure earlier this month.
The billionaire had been expected to step down after completing an £800m IT project, although that is expected to continue until next year.
A leading industry source said: “It is my understanding that they are starting again and the recruitment pot is empty. It is a car crash.”
Some sources have previously claimed that Mr Issa’s continued involvement in the business could deter candidates. However, Lord Rose said last month that he would urge Mr Issa to step back entirely despite remaining a 22.5pc shareholder.
Asda has been without a permanent chief executive ever since the abrupt departure of Roger Burnley in August 2021.
This came in the wake of the billionaire Issa brothers buying Asda alongside TDR Capital in a debt-fuelled £6.8bn deal, with the former boss leaving amid a disagreement over strategy.
A search was kicked off at the time that led to a large number of candidates being approached, including M&S boss Stuart Machin and former Tesco boss Jason Tarry.
However, the recruitment push came to a halt in 2022 as Mr Issa opted to take over operations.
It is understood that not a single candidate has been formally offered the job in the latest recruitment drive, nor has anyone been interviewed by the board.
That is despite Mr Issa confirming his intention to step down six months ago, which prompted the business to ramp up its search for a permanent replacement.
Asda said in May last year that it had “commenced a formal search of global talent to identify a new chief executive”, adding that the “search process will take several months”.
A rival retail executive laid out the scale of the task facing Asda given its struggles to find a new chief executive since 2021.
He said: “It is hard to find a food retail leader who does not claim to have been tapped up.
“In the last year as they got to the point of exiting Mohsin Issa, they have been using Spencer Stuart which has approached a lot of people all over again.”
A source close to Asda denied that it was back to square one in its search for a new chief executive, adding that Lord Rose’s promotion has given the business a chance to reassess its options.
“It has afforded us the opportunity to look again,” they said, adding that Lord Rose is being supported in Asda’s IT transition by new technology chief Rob Barnes.
In an interview with The Telegraph last month, Lord Rose said it has been looking for a new chief executive in earnest since earlier this year.
While claiming to be “embarrassed” by Asda’s performance under Mr Issa’s tenure, he said the new replacement needed to be a “full-time, 24/7, fully-experienced retail executive”.
Lord Rose sought to reassure staff during an employee conference last week.
An Asda spokesman added: “Last week, Stuart Rose and Rob Barnes addressed 3,000 store managers and leaders at Asda’s ‘Golden Quarter’ conference and outlined their priorities for the business.
“These included bringing in a chief executive with the requisite experience and calibre to lead a business of Asda’s size, heritage and market position. This process is ongoing and we will provide a future update in due course.”
The continued uncertainty over Asda’s management has raised tensions with union members in recent months, who have protested over the supermarket’s bid to cut costs.
A spokesman for GMB, which represents Asda workers, said: “Store standards are slipping, market share is falling and Asda staff are struggling. It’s no wonder TDR Capital is struggling to appoint a chief executive to steady the ship.
“The consequences of the debt leveraging and asset stripping inflicted on Asda by TDR Capital are clear for all to see.
“In light of all of this, whoever is eventually appointed has a very difficult job on their hands. We hope for the sake of Asda’s workers that the leadership needed can soon be found.”
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