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Sainsbury's

Egyptian court sentences Sainsbury’s chief to 2 years in jail

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By John Glenday, Reporter

April 29, 2015 | 2 min read

As if declining retail sales weren’t enough of a headache Sainsbury’s chief executive Mike Coupe now faces a second challenge after being convicted of embezzlement by an Egyptian court, a charge which could see him serve two years in jail should he set foot in the country.

The case hinges on an alleged attempt to seize cheques from a local business Sainsbury’s had invested in 16 years ago, something the court held Coupe responsible for as the most senior employee of the business.

Coupe was convicted by default of the crime after failing to turn up to court hearings, although Sainsbury’s has said they were never informed by the court of any such case.

A Sainsbury’s spokesperson said: “We strongly refute the legal case in Egypt brought against our chief executive Mike Coupe. This relates to a historic commercial dispute in which Mr Coupe had no involvement.

“Mike was not even employed by Sainsbury’s at the time of the original business deal in 2001 which gave rise to these legal proceedings.

"We are contesting these groundless allegations.”

The case is being brought by local businessman Amr El Nasharty whom Sainsbury’s partnered with in a disastrous joint venture in 1999, which saw it pay £50m for a business which subsequently lost £35m on sales of £80m.

When attempting to pull out two years later El Nasharty offered to buy back Sainsbury’s stake, but the retailer says the cheques he wrote to pay for it bounced.

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