Morrisons looks into Safeway accounting

Morrisons has launched an inquiry into the accounting problems it has uncovered within the Safeway business.

David Jones, Morrison’s deputy chairman of the group, had called for an explanation from accountant KPMG, which audited both retailers books.

The retailer took over Safeway for £3 billion last year, but has since issue two profit warnings which it puts down to its acquisition’s unusual accounting methods.

Jones has called in KPMG to explain how one firm of auditors could treat two supermarket in such different ways.

The move is expected to meet with the approval of shareholders, who are increasingly concerned about the company’s prospects and the hold that chairman Sir Ken Morrison has over the business.