Tesco Left Red-Faced After GBP1m Bikes Payment Error

Tesco is taking legal action against one of its suppliers after mistakenly paying nearly £1million for six bicycles which should have cost less than £1,000.
The supermarket giant said it was meant to pay £984 for the Muddy Fox Suspension Bikes from Universal Cycles, a subsidiary of Sports Direct, but an error by a member of its finance team led to a payment of £984,000 instead.
Essex-based Universal has allegedly paid back £863,000 but Tesco claims the bikes company is holding on to the remaining £121,400 in outstanding funds.
According to a legal action filed at the High Court, Britain’s largest retailer is also seeking legal costs and a further £1,783, which it claims it is owed in interest at a rate of 8 per cent a year.
Tesco claims it made the overpayment in August and wrote to Universal requesting the money back, but was made to wait more than a month before receiving part of the funds.
The case is due to be heard on December 10, although the two parties are believed to have scheduled a meeting before then to try to settle the dispute out of court.