Home Money Asda hires its former boss to revive its fortunes

Asda hires its former boss to revive its fortunes

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Struggle: Asda has been trying to hire a CEO for more than three years

Allan Leighton will return as boss of Asda as the private equity-backed supermarket looks to turn around.

Leighton, 71, who made his name at Asda, will replace Stuart Rose as chief executive. Rose will leave after a transition period.

Rose has been at Asda since 2021 and took over day-to-day in September when co-owner Mohsin Issa resigned.

One of Leighton’s priorities will be to appoint a full-time chief executive. Asda has been trying to recruit a chief executive for more than three years.

His move marks the return to the company of one of Britain’s most prominent businessmen. He was chief executive of Asda from 1996 to 2001. He also chaired the co-operative for nine years.

He was an integral member of the executive team that brought Asda back from the brink of bankruptcy in the early 1990s. The Leeds-based business was acquired by US supermarket giant Walmart in a £6.7bn deal in 1999.

Struggle: Asda has been trying to hire a CEO for more than three years

Leighton said he was “delighted” to be returning and that “Asda’s potential is now significant”.

But it will have its work cut out for it, as Asda has struggled since private equity firm TDR Capital teamed up with billionaire Issa brothers, Mohsin and Zuber, to buy the supermarket from Walmart for £6.8bn in 2021.

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