Wesfarmers is investigating allegations that Target inflated its earnings for the first half of 2015/16 by negotiating supplier rebate deals.
“Latterly I have been dismayed to learn of the accounting issues at the half year,” Machin said in a statement released on Friday evening.
“I was not aware of these, but they have happened on my watch and as managing director I accept my share of the responsibility. The right thing is now for me to move on.”
Allegations emerged that Target had struck deals with some overseas’ suppliers to have additional rebates on stock with a guarantee that it would pay more later.
Wesfarmers said the the outcome of the investigation will soon be finalised.
Machin was appointed managing director of Target in April 2013, tasked with leading the discount department store’s transformation and reinvigoration. Prior to this, he was store development and operations director at Coles.
“During my tenure at Target, although the financial results were frustratingly disappointing, I feel we made enormous progress in reshaping a very troubled business,” Machin said.
Wesfarmers managing director, Richard Goyder, said he accepted Machin’s resignation.
“Stuart made a substantial contribution to the turnaround of Coles as operations director and put great effort into working to rebuild Target. Consistent with my experience of working with Stuart, he has co-operated well with the investigation,” Goyder said.
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