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| Version 4 | Version 5 |
|---|---|
| Sports Direct: Ashley steps in as chief executive resigns | Sports Direct: Ashley steps in as chief executive resigns |
| (35 minutes later) | |
| The founder and majority owner of Sports Direct, Mike Ashley, has stepped in as chief executive at the retailer after the surprise resignation of Dave Forsey. | The founder and majority owner of Sports Direct, Mike Ashley, has stepped in as chief executive at the retailer after the surprise resignation of Dave Forsey. |
| The company has been under fire over zero hours contracts and disclosure that staff at a warehouse were paid less than the minimum wage. | The company has been under fire over zero hours contracts and disclosure that staff at a warehouse were paid less than the minimum wage. |
| Independent shareholders had called for changes to the way the company was run. | Independent shareholders had called for changes to the way the company was run. |
| The main request, though, was for the removal of chairman Keith Hellawell. | The main request, though, was for the removal of chairman Keith Hellawell. |
| Mr Ashley said in a statement: "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 Ashley said in a statement: "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." |
| He owns more than 50% of the business he founded. His formal position was executive deputy chairman. | He owns more than 50% of the business he founded. His formal position was executive deputy chairman. |
| The Sports Direct statement does not make clear why Mr Forsey is leaving. He has worked there for 32 years after starting as a part-time worker when he was 18. | The Sports Direct statement does not make clear why Mr Forsey is leaving. He has worked there for 32 years after starting as a part-time worker when he was 18. |
| Earlier this year he agreed to forgo a £3.7m share award in recognition of the problems at the company. | |
| 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." | |
| 'Workhouse' | '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. |
| The company was criticised for its use of zero hours contracts. It says it will offer workers who want them guaranteed hours. It also said it would put a worker on the board. | The company was criticised for its use of zero hours contracts. It says it will offer workers who want them guaranteed hours. It also said it would put a worker on the board. |
| That report also criticised Mr Forsey for failing to inform the Sports Direct board about some of the issues at Shirebrook. | |
| 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. |
| Mr Ashley denied knowing much about the way Shirebrook operated, telling the BBC: "You'd be surprised how little I knew of what was going on." | |
| 'Bad capitalism' | |
| Mike Fox, from major shareholder Royal London Asset Management, wasn't impressed with Friday's board changes: 'The installation of Mike Ashley as chief executive, consolidating his influence at the top of the business, is unlikely to reassure anyone." | |
| He said the way the company was run had long been a problem and that Sports Direct still needed a new chairman before it could rebuild trust with investors. | |
| Sarah Wilson, chief executive of shareholder pressure group, Manifest, told BBC Radio 5 live the move added another corporate governance problem: "Are we going to see [Mike Ashley] step down from his other job as deputy chairman? | Sarah Wilson, chief executive of shareholder pressure group, Manifest, told BBC Radio 5 live the move added another corporate governance problem: "Are we going to see [Mike Ashley] step down from his other job as deputy chairman? |
| "Had Mike Ashley listened to shareholders four or five years ago, we might not be in the situation we're in at the moment." | "Had Mike Ashley listened to shareholders four or five years ago, we might not be in the situation we're in at the moment." |
| She said the company's actions were not just damaging to shareholders but "undermined the general public's perception of capitalism - full stop". | She said the company's actions were not just damaging to shareholders but "undermined the general public's perception of capitalism - full stop". |
| Fallen | 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. | 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. | 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. | 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. | 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. |
| Sports Direct's board made two other changes, promoting Karen Byers to the role of global head of operations, and Sean Nevitt to the role of global head of commercial. | Sports Direct's board made two other changes, promoting Karen Byers to the role of global head of operations, and Sean Nevitt to the role of global head of commercial. |