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UK's Tesco Chief to Resign After Massive Accounting Gaffe

FILE - The signage of Tesco Extra is silhouetted against the sun in southwest London.

The head of British retail giant Tesco says he will step down following the revelation of a $422 million accounting discrepancy.

An interim earnings report released Thursday included the news that chairman Richard Broadbent will leave the company after a three-year tenure. No specific date was given for his resignation.

"A new management team is in place to address the root causes of the misstatement and to develop and implement the actions that will build the company’s future," Broadbent said in the statement posted to the Tesco website. "I am confident that the new Chief Executive and Chief Financial Officer will move rapidly and effectively in this respect."

Tesco, the world's third biggest supermarket group, revealed last month that its profits during the first half of 2014 were overstated by an estimated $401 million. A subsequent accounting audit showed the figure to be even higher.