Auditor quits troubled Sports Direct

SPORTS Direct mogul Mike Ashley suffered a fresh setback as it emerged Grant Thornton is to quit as the retailer’s auditor.

The auditor is stepping down following the shock revelation of a £605m tax bill disclosed in the company’s accounts last week.

It plans to resign after the general meeting in September, after being informed of the tax liability just hours before it was due to sign off the accounts. Grant Thornton has been signing off Sports Direct’s accounts since the chain listed in 2007.

The company is also responsible for auditing Mash Holdings, Ashley’s personal company which is Sports Direct’s biggest shareholder, as well as Newcastle United FC, which is owned by the billionaire tycoon.

It is not known whether Grant Thornton will continue to work on Mash Holdings and the football club’s accounts, but it will pile further pressure on Ashley, 54, whose plans to save the High Street have turned sour recently.

Ashley regretted buying House of Fraser and warned he will close more of its 54 stores.

Meanwhile, Grant Thornton is facing scrutiny over its role at cake chain Patisserie Valerie, where it failed to spot a £94m fraud which brought the company to its knees. It is also being investigated by the Financial Reporting Council for signing off a deal between Sports Direct and Ashley’s brother, John.

In a tirade published alongside Sports Direct’s accounts, Ashley said discussions with Big Four accountants Deloitte, KPMG, EY and PwC to be a potential replacement for Grant Thornton had ‘thrown up some barriers’.