Frasers Group encounters a significant issue with £7m unaccounted wages.
- The missing data is attributed to an accounting system error during acquisition.
- I Saw It First is among the affected businesses under Frasers Group.
- Cooper Parry auditors struggle to verify payroll data post-acquisition.
- Frasers Group continues its expansion with new store openings planned.
Frasers Group is embroiled in a complex situation where £7 million worth of wage and salary data for its subsidiary, I Saw It First, cannot be verified due to an accounting system error. The issue arose after the company’s acquisition in July 2022. Despite efforts, the payroll data failed to migrate to Frasers Group’s system, leaving it inaccessible for auditors from Cooper Parry, as reported by This Is Money.
This challenge is not isolated to I Saw It First alone within the Frasers Group portfolio. Another business under its umbrella, the fashion and homeware retailer Choice, is experiencing similar auditing issues. Hart Shaw auditors reported missing vital information needed to complete their review, further complicating Frasers Group’s auditing processes.
A spokesperson from Frasers Group clarified that the lost payroll data for I Saw It First was not moved to their systems during the integration process. The original system, where the data was stored, no longer exists, exacerbating the difficulty in accessing the required information.
While tackling these internal data issues, Frasers Group remains focused on its growth strategy. The company has announced plans for international expansion, including opening new Sports World stores in the Netherlands and Sports Direct outlets in Luxembourg and Belgium. Domestically, Frasers Group aims to acquire the Maidstone shopping centre, Fremlin Walk, as part of its ongoing acquisition strategy.
Further comment from Frasers Group was not forthcoming, leaving questions about how these data challenges might impact their operational and reputational standing moving forward.
The data discrepancies with I Saw It First present a significant hurdle for Frasers Group amidst its expansive growth ambitions.
