Tesco names new chairman

British supermarket giant Tesco has named John Allan as chairman, ending a four-month search after Richard Broadbent resigned amid an accounting scandal.

Allan, 66, will join the board and be appointed chairman on March 1, when Broadbent will step down from the board, Tesco said in a statement.

"I'm very pleased to be taking on this role at such a critical moment for the business and look forward to working with the new executive team and the board," Allan said.

Britain's biggest retailer was plunged into crisis last October when Broadbent stepped down as chairman after a 99% drop in net income for the first half of fiscal 2014. Tesco reported first half profits of $9.6 million, about $333 million less than previous estimates. An investigation conducted by Deloitte concluded that the vast overestimate of first half profits resulted from some income being booked too early and some costs not being recognized, although it is not yet clear whether this was accidental or deliberate. In addition to Broadbent resigning, eight other executives were suspended.

Allan is currently on the boards of electrical retailer Dixons Carphone and postal operator Royal Mail, but will step down from those positions when he takes up his new role at Tesco.

Tesco is the world's third-biggest supermarket group after France's Carrefour and global leader Walmart.