Tesco

Tesco executives may face a parliamentary grilling after the retail giant's bosses revealed that it miscalculated its half-year profits by £250m.

Speaking to BBC Radio 5, the chairman of a British parliamentary committee of lawmakers said executives may need to explain themselves as the accounting blunder caused £2bn (€2.6bn, $3.3bn) to be wiped off the group's value.

"It was a stratospheric error", said Adrian Bailey, Labour MP for West Bromwich West.

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"We may well as a committee want to look at this. Not just at Tesco but at what is going on in the retail industry and in the relationship with the suppliers to see if the issues we came across two years ago are still there."

In the past couple of years Tesco has seen its share value steadily fall amid price wars, loss of market share and leadership changes.

Tesco shares tumbled on 23 September despite the troubled British retailer revealing that it has parachuted in the former chief financial officer for Marks & Spencer, Alan Stewart, to help turn around the company.

Stewart was brought in more than two months ahead of schedule after Laurie McIlwee left just over a week ago.

Tesco had already cut its full-year profit forecast from £2.8bn to £2.4bn in August.

It has also since suspended four executives, including UK managing director Chris Bush, while media reports have speculated that the others include food commercial director John Scouler and the head of food sourcing, Matt Simister.

Tesco has also launched an internal investigation, led by Big Four accountancy firm Deloitte.

The Financial Reporting Council said it is observing the developments and may launch a probe after the results of the internal investigation are published.