Ashley under siege as more investors lose patience

THE pressure is mounting on Mike Ashley as yet more investors lose patience with the Sports Direct owner.

A trio of fund managers have joined the masses demanding a major overhaul at the retailer for its working conditions and corporate governance.

Royal London Asset Management and Hermes Investment Management yesterday called for shareholders to vote against the re-election of the Sports Direct leadership team at Wednesday’s annual general meeting. They join three of the world’s largest pension funds, Legal & General Investment Management and Aberdeen Investment Management, which will vote against chairman Keith Hellawell.

It follows a string of scandals over alleged ‘Victorian workhouse’ conditions at its Derbyshire warehouse, which was likened to a ‘gulag’ by MPs. Ashley is attempting to cool the rising anger by holding an open day at his Shirebrook warehouse after the AGM. But he is likely to face a storm of criticism at the event, with trade body the Pension And Lifetime Savings Association (PLSA) urging investors to condemn the retailer’s unfair treatment of staff.

Luke Hildyard, policy lead for stewardship and corporate governance at the PLSA, said Ashley’s firm typified some of the ‘worst corporate governance practices in recent years’.