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| Version 1 | Version 2 |
|---|---|
| Sports Direct chief executive resigns | Sports Direct chief executive resigns |
| (35 minutes later) | |
| Dave Forsey, the chief executive of Sports Direct, has resigned - a move founder Mike Ashley said is like "losing his right arm". | Dave Forsey, the chief executive of Sports Direct, has resigned - a move founder Mike Ashley said is like "losing his right arm". |
| The board is replacing him with majority shareholder Mike Ashley. | The board is replacing him with majority shareholder Mike Ashley. |
| The company has been under fire over its working practices after it emerged that staff at a warehouse were paid less than the minimum wage. | |
| Its recent shareholder meeting heard calls for the removal of chairman Keith Hellawell. | Its recent shareholder meeting heard calls for the removal of chairman Keith Hellawell. |
| Mike Ashley said: "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." | Mike Ashley said: "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." |
| Mr Forsey said: "I have given my entire working life to the company and in return the company has given me amazing opportunities and experiences." | Mr Forsey said: "I have given my entire working life to the company and in return the company has given me amazing opportunities and experiences." |
| The statement does not make clear why Mr Forsey is leaving the company. He has worked there for 32 years after starting work as a Saturday boy when he was 18. | The statement does not make clear why Mr Forsey is leaving the company. He has worked there for 32 years after starting work as a Saturday boy when he was 18. |
| 'Workhouse' | |
| Sports Direct, which has around 450 retail outlets, came under the spotlight after an investigation uncovered that staff were kept on site at its giant Shirebrook warehouse in Derbyshire after their shifts for body searches. | Sports Direct, which has around 450 retail outlets, came under the spotlight after an investigation uncovered that staff were kept on site at its giant Shirebrook warehouse in Derbyshire after their shifts for body searches. |
| These took so long that their pay effectively dipped below the minimum wage. | These took so long that their pay effectively dipped below the minimum wage. |
| Mr Ashley, Sports Direct's billionaire founder, was called to answer questions from MPs, who compared working practices at the warehouse with "that of a Victorian workhouse than that of a modern High Street retailer". | Mr Ashley, Sports Direct's billionaire founder, was called to answer questions from MPs, who compared working practices at the warehouse with "that of a Victorian workhouse than that of a modern High Street retailer". |
| In the wake of that, the sportswear chain's lawyers produced a critical report of its working conditions. | In the wake of that, the sportswear chain's lawyers produced a critical report of its working conditions. |
| But calls for an independent review continued and earlier this week, Sports Direct said it would authorise such a study of working practices and corporate governance, following concerns raised by shareholders. | But calls for an independent review continued and earlier this week, Sports Direct said it would authorise such a study of working practices and corporate governance, following concerns raised by shareholders. |
| Fallen | |
| Mr Ashley's brash style is unorthodox for the founder and executive of a leading UK company. The owner of Newcastle United football club was photographed with a wad of cash when he took shareholders and journalists on a tour of the Shirebrook site after the shareholders' meeting. | |
| He also revealed that he travels to work by helicopter. The company employs Mike Ashley's daughter's boyfriend to run its property arm. | |
| Financially, the company is not in a good place. | |
| The company's shares have fallen by 50% this year, and earlier this month Sports Direct warned that that profits next year would be down on this year. |