Ashley steps in after Sports Direct chief quits
Retailer has been hit by falling profits and work practice allegations
Sports Direct founder Mike Ashley is to take over as chief executive of the company, putting the beleaguered billionaire in charge of the retailer he founded as it reels from slumping profits and accusations of slack governance that have sent the stock reeling.
Ashley will replace Dave Forsey, who quit yesterday, and retain the company’s current management team,Sports Direct said in a statement this morning.The company also appointed Karen Byers as global head of operations and Sean Nevitt as commercial head.
The company has been under fire from politicians and investors after allegations of shortcomings in labour practices and inadequate corporate governance led to a vote against the reappointment of chairman Keith Hellawell at its annual general meeting.
Earlier this week, Ashley bowed to pressure by appointing an independent law firm to conduct a review of its boardroom and employment practices. The stock has lost about half its value this year while rival JD Sports has soared 39 per cent.
Forsey had been with the company for 32 years, with the last nine as chief executive. The departing executive declined to accept a multi-million pound share award this year amid criticism of the company’s performance.
“I feel like I have lost my right arm, but I do hope to have the opportunity to work with Dave again in the future,” Ashley said in the statement.
Sports Direct, whichAshley started as a single shop in 1982, has floundered as it expanded. Shortly after its initial share sale in 2007, Ashley described institutional investors complaining about early poor performance as a “bunch of cry babies.”
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