Supreme Foodservice AG has filed a $125 million complaint in a United States court against UK-based Compass Group plc,
March 10, 2006
FM Staff
seeking redress for damages and loss of earnings as a result of United Nations contracts won by Compass’s global subsidiary Eurest Support Services (ESS). Supreme, a Swiss contract catering firm serving international non-governmental organizations, is also suing both former ESS executives and former UN officials as part of its claim. Compass, which is still being investigated by US federal authorities and the UN over its handling of the contracts at issue, said it had not yet been served with the complaint but emphasized that it would "resolutely defend" itself. It also insisted the action was not expected to have "any material impact on the company's financial performance". Compass generated $270 million of turnover (sales) as a result of the contracts. An internal Compass investigation had found "serious irregularities" in the way its subsidiaries had won the contracts from the UN, resulting in the dismissal of three executives, including the head of Compass's UK & Ireland, Middle East and Africa division, Peter Harris.
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