BCF managers are among those who have been underpaid by Super Retail Group.
BCF managers are among those who have been underpaid by Super Retail Group. Pamela Frost

Company behind BCF, Supercheap underpaid staff by $32m

THE company behind shopping giants BCF, Supercheap and Rebel sportswear has admitted to underpaying its store managers by $32 million.

The underpayment was revealed in a statement to the ASX today.

Super Retail Group managing director and CEO Peter Birtles said he would step down as later this month because of the significance of the amount.

"The issue with our retail managers reflects the same problem that we recently uncovered with our Set UP team members (staff opening new stores)," Mr Birtles said.

"They are both serious underpayments that we deeply regret." 

Mr Birtles said the company had amended its contracts with store managers to make sure their salaries remunerate them for overtime and allowances.

"We are very disappointed that we have let these team members down and not met out standards, and we apologise to each person affected unreservedly," he said.

The company runs multiple stores across regional Queensland and New South Wales, employing hundreds of people.

BCF has locations in Rockhampton, Gympie, Hervey Bay, Bundaberg, Mackay, Gladstone, Toowoomba, Cairns, Townsville and throughout southeast Queensland. In New South Wales, they also have stores in Grafton, Lismore, Tweed Heads, and Coffs Harbour.  

Supercheap Auto, another Super Retail Group chain, has stores dotted throughout the east coast including Gympie, the Fraser Coast, Gladstone, Rockhampton and further north.

Store managers at each location could be affected by the underpayment.

"We identified this issue after initiating a thorough review of employment arrangements across our business, supported by external experts," Mr Birtles said.

"We are fully committed to remediating this situation."

The company will recognise an estimated $32 million in its half-yearly financial results to be released this week to cover the cost of back payments to affected staff.

The payments will cover six years worth of pay, up to the end of the 2017-2018 financial year.

Affected staff will begin to be informed from today.

The company said it was confident there were no further payment issues after reviewing overtime and entitlements across the company.