Ashley gives top job to his future son-in-law
MIKe Ashley was accused of nepotism after confirming his future son-in-law will succeed him as chief executive of Frasers Group.
Michael Murray, 31, who is not an executive on the retail and property group’s board, will become one of the youngest bosses in the FTSe 250.
In his current role as ‘head of elevation’, Murray, who is engaged to Ashley’s daughter Anna, has been credited with driving a strategy to win over young shoppers and re-build relationships with big brands such as nike and Adidas.
But his promotion reignited criticism that Ashley was trying to run Frasers Group, which he founded as a single store in Maidenhead, Berkshire, in 1982, as a personal fiefdom. The group is named after department store House of Fraser, which it owns.
Independent retail analyst Andrew Busby said: ‘Murray’s promotion doesn’t pass the sniff test. There needs to be a level of competence for a chief executive.’
retail consultant nick Bubb added: ‘Investors might reasonably want to know why Mr Murray is not even on the current board and whether his promotion reflects merit rather than nepotism.’ Murray’s role as a property consultant to the firm has already caused a furore at the company. yesterday Frasers Group revealed he had received another £2.5m in fees – taking his total pay to £17.5m over six years.
In the last year, Frasers Group signed a separate deal with another firm controlled by Murray, MPM elevation Limited, to pay him £100,000 per year for ‘elevation strategy services’. His mother, nicola, and her company nM Design, an interior architecture and design studio in London, have also been employed to ‘perform design work’ for Frasers Group, netting her up to £100,000.
Fans of Murray, a privately educated former club promoter, yesterday said he has played a central role in taking the company upmarket and boosting the share price, making his family relationship ‘irrelevant’.
Finance chief Chris Wootton said: ‘Without insulting him, by Mike’s own admission he is a bit of a dinosaur.
‘Michael is young, fresh and youthful and knows what the customer wants. Mike is very good at selling socks.’
yesterday, announcing its results for the year to April 25, Frasers Group reported a rise in earnings to £390.8m from £302.1m, despite revenue falling 8.4pc to £3.6bn.
Profit fell 94.1pc from £143.5m to £8.5m, largely due to £317m of property impairments reflecting the risk of future lockdowns and the shift to online shopping during the year.
Ashley’s financial success as chief executive was marred by the revelation of ‘Victorian warehouse’ conditions in his Derbyshire warehouse.
The 56-year-old, who owns newcastle united FC, drank 12 pints and vomited in a fireplace during a management meeting, a court also heard.
Shares in Frasers Group, which also owns Sports Direct, fell 0.2pc, or 1.5p, to 613.5p.