The chief executive of Sainsbury's has been sentenced to two years in an Egyptian jail.
Mike Coupe was convicted by a court in Giza for what it claimed was embezzlement after he allegedly tried to seize cheques linked to an Egyptian business Sainsbury's invested in 16 years ago.
As the retailer's chief executive and its most senior employee, the court held Coupe responsible.
According to The Times, Coupe travelled to Egypt on Sunday (26 April) to appeal the conviction, but the case was postponed until next month.
A spokesperson for the retailer 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 stems from Sainsbury's foray into Egypt in 1999.
Sainsbury's paid £10 million that year for a 25 per cent stake in the joint venture with local partner Amr El Nasharty, and £40m six months later to raise it to 80 per cent.
When Sainsbury's withdrew from Egypt in 2001, the business had about 100 stores and was losing £35m on sales of £80m.
According to Sainsbury's, El Nasharty bought the joint-venture from the UK retailer in 2001 but 'paid us with cheques that bounced'.
'Mr El Nasharty is now claiming that Mike Coupe was in Egypt in July 2014 and tried to seize these cheques,' the Sainsbury's spokesperson told The Times.
'This is clearly ridiculous. Mike Coupe was in London carrying out his normal duties that day.'
