Ashley says Sports Direct upgrade plans still on track
MIKE Ashley has insisted his “elevation” strategy to change Sports Direct from a discount retailer to the Selfridges of sport is still on track — although it might take longer than first thought.
He made the comments to shareholders at the retailer’s annual general meeting in central London yesterday, heaping praise on Michael Murray, head of elevation and Mr Ashley’s soon-to-be son-in-law.
At times looking bored, at others animated and cracking jokes, the retail tycoon also said House of Fraser remains an ongoing challenge but one he was willing to face.
His appearance came as it emerged that Sports Direct is planning to move from The Quays to open a store in a 22,500 sq ft unit at Newry’s Buttercrane Centre.
The plans are subject to planning permission.
Speaking at yesterday’s meeting, Mr Ashley ruled out calls for an independent review into corporate governance, revealed he “begged” Debenhams to stop paying a dividend and explained he wanted a Big Four auditor for the business as a “tick box” exercise to prove his critics wrong.
Wearingabluecheckedblazer, black trousers, white shirt and blue tie, Mr Ashley sat quietly through the formal part of the meeting, which was conducted by chairman David Daly, a former Nike executive.
There was no update on the £605m VAT bill being demanded by Belgian authorities, which Sports Direct is challenging and caused delays to results being published earlier this year.
Shareholders were also left in the dark over who will audit the business after Grant Thornton quit.
Business Secretary Andrea Leadsom is now expected to appoint one on Sports Direct’s behalf after PwC, Deloitte, KPMG and EY all ruled themselves out.
Voting took place, with all resolutions passing, including Mr Ashley being re-elected as chief executive.
However, nearly a third of independent investors voted against the re-election of Mr Ashley, who controls 62% of the firm, following a difficult year.
Following the vote the businessman agreed to a request to answer questions on broader topics. The most contentious issue remains the company’s lack of an auditor.