Sports Direct tycoon faces more criticism from shareholders

An influential investor group has put more pressure on Mike Ashley to shake up corporate governance and address concerns over working practices at Sports Direct.

The Investor Forum, which holds assets worth more than £14 trillion, has urged the retailer to “undertake a wide-reaching independent review of the entire governance practices at the company”.

The unprecedented criticism comes amid growing shareholder unrest over the power wielded by Mr Ashley, who owns 55% of the group and is deputy executive chairman.

The intervention comes after it was revealed that Sports Direct’s accounts fail to disclose that international deliveries are run by Mr Ashley’s brother, John.

Forum director Andy Griffiths said: “It is highly unusual for the Investor Forum to consider it necessary to make public their concerns and recommendations in this way.

“In prior situations we have always managed to work privately with companies to create effective long-term solutions.

“We do not take this step lightly and, whilst we welcome Sport Direct’s move to hold an open day, we still have not received an appropriate level of commitment to respond to investor concerns and, as a result, the usual options have been exhausted.”

He added that the business requires “fundamental reform”.

Sports Direct is also facing calls from investors asking for an independent review into working practices following Mr Ashley’s grilling by MPs in June.

Mr Ashley told MPs from the Business Select Committee that staff were not paid during security searches at the end of their shift, meaning they took home less than the minimum amount required by law.

For its part, Sports Direct has said the findings of a separate review carried out by law firm RPC would be published in the week beginning September 5 and it would conduct a review of its board of directors by next April.