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| Sports Direct: Mike Ashley steps in after CEO Dave Forsey resigns | Sports Direct: Mike Ashley steps in after CEO Dave Forsey resigns |
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| The founder of Sports Direct, Mike Ashley, is taking over as chief executive of the troubled sports retailer, following the resignation of Dave Forsey. | The founder of Sports Direct, Mike Ashley, is taking over as chief executive of the troubled sports retailer, following the resignation of Dave Forsey. |
| The surprise move for Ashley to take a more hands-on role came after he admitted in a rare TV interview earlier this week that he had taken his “eye off the ball”, before adding: “I’m going to fix it and I will.” | The surprise move for Ashley to take a more hands-on role came after he admitted in a rare TV interview earlier this week that he had taken his “eye off the ball”, before adding: “I’m going to fix it and I will.” |
| Forsey’s departure comes after months of mounting criticism of Sports Direct’s working practices and corporate governance by shareholders, unions and politicians, following a Guardian investigation that exposed a climate of fear at its warehouse in Shirebrook, Derbyshire. MPs later compared it to a Victorian workhouse. | Forsey’s departure comes after months of mounting criticism of Sports Direct’s working practices and corporate governance by shareholders, unions and politicians, following a Guardian investigation that exposed a climate of fear at its warehouse in Shirebrook, Derbyshire. MPs later compared it to a Victorian workhouse. |
| Ashley, a majority owner of Sports Direct, which he founded in 1982, said of the departure of his long-serving righthand man, Forsey: “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, a majority owner of Sports Direct, which he founded in 1982, said of the departure of his long-serving righthand man, Forsey: “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.” |
| Sports Direct’s share price, which has taken a battering over the past 12 months during which time the company fell out of the FTSE 100, were up nearly 5% on Friday morning following the announcement of Forsey’s departure, to about 300p. | |
| Forsey started working for Ashley as a teenager three decades ago. In June, Forsey gave up a share award worth £3.7m he was due to receive next year. He has been paid a salary of £150,000 but no annual bonus. | Forsey started working for Ashley as a teenager three decades ago. In June, Forsey gave up a share award worth £3.7m he was due to receive next year. He has been paid a salary of £150,000 but no annual bonus. |
| “I have given my entire working life to the company and in return the company has given me amazing opportunities and experiences,” Forsey said. “I wish everyone at Sports Direct well in the future.” | “I have given my entire working life to the company and in return the company has given me amazing opportunities and experiences,” Forsey said. “I wish everyone at Sports Direct well in the future.” |
| Sports Direct’s chairman, Keith Hellawell, thanked Forsey for his “significant contribution over the last 32 years and during a period of significant growth and change at the company”. | Sports Direct’s chairman, Keith Hellawell, thanked Forsey for his “significant contribution over the last 32 years and during a period of significant growth and change at the company”. |
| The company also announced that Karen Byers, its head of retail, had been promoted to global head of operations and Sean Nevitt, head of buying, had been elevated to global head of commercial. | The company also announced that Karen Byers, its head of retail, had been promoted to global head of operations and Sean Nevitt, head of buying, had been elevated to global head of commercial. |
| Byers, a multimillionaire, has been described as a tough “workaholic” and as “the person who sets the rules”. She has had a crucial role in the Sports Direct growth story since joining the firm 24 years ago as a shop manager. She caught Ashley’s eye when she sold him a pair of jeans in a store he was buying. | Byers, a multimillionaire, has been described as a tough “workaholic” and as “the person who sets the rules”. She has had a crucial role in the Sports Direct growth story since joining the firm 24 years ago as a shop manager. She caught Ashley’s eye when she sold him a pair of jeans in a store he was buying. |
| Independent retail analyst Nick Bubb said: “Poor old Dave Forsey may have fallen on his sword, but he did act as a human shield to Mike Ashley and it is not clear how somebody who admitted to MPs a few months ago that the Sports Direct business was getting too big for him will get on with now being the real CEO.” | Independent retail analyst Nick Bubb said: “Poor old Dave Forsey may have fallen on his sword, but he did act as a human shield to Mike Ashley and it is not clear how somebody who admitted to MPs a few months ago that the Sports Direct business was getting too big for him will get on with now being the real CEO.” |
| Earlier this week, Sports Direct bowed to shareholder pressure by agreeing to an independent review of its working practices and corporate governance. | Earlier this week, Sports Direct bowed to shareholder pressure by agreeing to an independent review of its working practices and corporate governance. |
| Ashley said he had not known about the poor treatment of employees but claimed there was little wrong at Sports Direct, telling BBC Breakfast on Tuesday that problems at the company’s warehouse were caused by “the odd rotten apple”. | Ashley said he had not known about the poor treatment of employees but claimed there was little wrong at Sports Direct, telling BBC Breakfast on Tuesday that problems at the company’s warehouse were caused by “the odd rotten apple”. |
| He said: “It is odd, isolated instances. It’s the odd rotten apple in the barrel and then you say: ‘OK, I’ve got to go and find the rotten apple in the barrel’ … I’m now coming in to work very closely with HR, the warehouse and the [employment] agencies.” | He said: “It is odd, isolated instances. It’s the odd rotten apple in the barrel and then you say: ‘OK, I’ve got to go and find the rotten apple in the barrel’ … I’m now coming in to work very closely with HR, the warehouse and the [employment] agencies.” |
| The sportswear tycoon announced plans earlier in September to put an employee on the company’s board to show its willingness to listen to staff, after its reputation was battered by the Guardian’s revelations and a campaign by the Unite union. | The sportswear tycoon announced plans earlier in September to put an employee on the company’s board to show its willingness to listen to staff, after its reputation was battered by the Guardian’s revelations and a campaign by the Unite union. |
| Joshua Raymond, a market analyst at XTB.com, was surprised that Forsey’s departure had not been announced at Sports Direct’s recent annual general meeting. “He seemed to have come through the crisis over the firm’s working conditions with a vigour to rectify the problems despite huge pressure from the media and large shareholders. | Joshua Raymond, a market analyst at XTB.com, was surprised that Forsey’s departure had not been announced at Sports Direct’s recent annual general meeting. “He seemed to have come through the crisis over the firm’s working conditions with a vigour to rectify the problems despite huge pressure from the media and large shareholders. |
| “Nevertheless whilst the change would have long been mooted by shareholders, the fact Mike Ashley immediately assumes the CEO role will keep a laser focused attention on the firm’s ability to recover from the crisis. This point is even more pertinent given much of the concern focused on Ashley’s power grip on all aspects of the retailer, a grip which has just become even stronger.” | “Nevertheless whilst the change would have long been mooted by shareholders, the fact Mike Ashley immediately assumes the CEO role will keep a laser focused attention on the firm’s ability to recover from the crisis. This point is even more pertinent given much of the concern focused on Ashley’s power grip on all aspects of the retailer, a grip which has just become even stronger.” |
| The company has also come under growing pressure from large City investors to make changes. More than half of independent shareholders (57%) failed to support Hellawell at the AGM, but Ashley insisted he was staying in the chairman role for at least another year to help him fix the problems. | The company has also come under growing pressure from large City investors to make changes. More than half of independent shareholders (57%) failed to support Hellawell at the AGM, but Ashley insisted he was staying in the chairman role for at least another year to help him fix the problems. |
| The law firm Reynolds Porter Chamberlain (RPC), which has long worked with Ashley and Sports Direct, carried out a preliminary review published this month and had been tasked with a further investigation. However, after shareholders called for an independent review at the retailer’s annual meeting, the company said it would ask someone else to conduct it. | The law firm Reynolds Porter Chamberlain (RPC), which has long worked with Ashley and Sports Direct, carried out a preliminary review published this month and had been tasked with a further investigation. However, after shareholders called for an independent review at the retailer’s annual meeting, the company said it would ask someone else to conduct it. |
| RPC’s report, published the day before the AGM, criticised the company and prompted Ashley to apologise to staff for practices that were “potentially oppressive” at its warehouse. | RPC’s report, published the day before the AGM, criticised the company and prompted Ashley to apologise to staff for practices that were “potentially oppressive” at its warehouse. |