Sports Direct chief Mike Ashley told to shape up by investors
They want an “independent and comprehensive review” of the High Street retail chain’s business practices
UNDER-fire SPORTS DIRECT chief Mike Ashley has been told to shape up by investors.
They want an “independent and comprehensive review” of the High Street retail chain’s business practices.
The demand from the INVESTOR FORUM comes ahead of Sports Direct’s annual meeting in two weeks.
And yesterday the INSTITUTE OF DIRECTORS backed the move, saying: “The IoD has for some time had concerns about the ability of Sports Direct’s board to make sure the company is run for the benefit of all shareholders. So it is pleasing to see the investment community addressing the issue head-on.”
Trade union Unite, which has led a long-running campaign against “Victorian” working practices at the chain, also piled more pressure on Mr Ashley by backing the Investor Forum.
Earlier this week the lobby group PENSIONS INVESTMENT AND RESEARCH CONSULTANTS urged shareholders to block Mr Ashley’s reappointment as executive deputy chairman.
Last night Newcastle United owner Mr Ashley, 51, released a statement saying he “looked forward to meeting everyone”.
The Investor Forum comprises some 40 major City investors. Its aim is to foster better relations between groups such as pension funds and insurers, and the companies they invest in.
Collectively, its members manage £14.5trillion of global assets.
The Sun has learnt that more than ten members, who hold 12 per cent of the total shares in Sports Direct, are behind the move.
AVIVA INVESTORS, LEGAL & GENERAL, FIDELITY INTERNATIONAL and STANDARD LIFE all back it.
The Forum wants an investigation into the chain’s employment practices, dealings between Sports Direct group companies and wider issues of corporate governance at board level.
Also in the spotlight are takeover activities and the company’s relationships with major suppliers.
In July Parliament’s Business, Innovation and Skills Committee said Sports Direct staff faced “appalling” conditions.
Last week Unite got around £1million in back pay for those paid below minimum wage.