Asda finance chief resigns after less than a year

Fallon, who has worked at Asda since 1996, succeeded outgoing finance chief Rob McWilliam in June 2021.

According to The Times, Fallon handed in his notice two weeks ago but his resignation was still confidential. It is understood that senior staff who stayed with the business following the £6.8bn acquisition by the Issa brothers and TDR Capital received their retention pay packages in March.

Fallon will be replaced by Morrisons’ former chief financial officer Michael Gleeson, who stepped down ahead of new owner CD&R’s refinancing of the supermarket chain.

A source close to the situation said that Fallon’s departure was triggered in part by a culture shock in terms of how the business was being run, as well as the role becoming more challenging amid rising inflation.

Fallon is the first of the Issa brothers’ executive appointments to resign, and the latest in a flurry of exits from the chain including former chief executive Roger Burnley, strategy chief Preyash Thakrar and chief operating officer Anthony Hemmerdinger.

Asda also suspended the search for a new CEO in January after Mohsin Issa became more heavily involved in the day-to-day running of the supermarket.

It is understood that candidates including Co-op Food boss Jo Whitfield, Tesco UK and Ireland boss Jason Tarry, Morrisons chief operating officer Trevor Strain and Pets at Home boss Peter Pritchard all turned down the role, as did recently appointed M&S chief executive Stuart Machin.

Mohsin Issa has told store managers that his aim is for Asda to overtake Sainsbury’s as the second-largest supermarket.

The Issa brothers and TDR Capital are also among the bidders vying for health and beauty chain Boots.