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| Sports Direct faces external review as reports into ‘appalling’ work conditions continue to reverberate | Sports Direct faces external review as reports into ‘appalling’ work conditions continue to reverberate |
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| Sports Direct has promised to hold an external review into its board of directors as revelations about ‘appalling’ work conditions continue to shake the company, the retailer revealed in a stock market statement on Thursday. | Sports Direct has promised to hold an external review into its board of directors as revelations about ‘appalling’ work conditions continue to shake the company, the retailer revealed in a stock market statement on Thursday. |
| Last week, The Guardian reported that large shareholders are considering voting against the reappointment of Keith Hellawell, the company’s chairman. | Last week, The Guardian reported that large shareholders are considering voting against the reappointment of Keith Hellawell, the company’s chairman. |
| Mike Ashley, the founder and majority shareholder of the British retailing group, added to shareholders’ concerns after he admitted the firm had got too big for him to control. | Mike Ashley, the founder and majority shareholder of the British retailing group, added to shareholders’ concerns after he admitted the firm had got too big for him to control. |
| Sports Direct, whose working practices were compared to a “Victorian workhouse” by a committee of MPS in July, also said it will publish an independent report into working conditions at the start of September. | Sports Direct, whose working practices were compared to a “Victorian workhouse” by a committee of MPS in July, also said it will publish an independent report into working conditions at the start of September. |
| The report, which is being carried out by law firm Reynolds Porter Chamberlain (RPC), will be published on 5 September, ahead of the company’s annual shareholder meeting. | |
| In June, Ashley admitted he has broken the law by falling to pay the national minimum wage to staff at a hearing of the House of Commons Business, Innovation and Skills select committee. | In June, Ashley admitted he has broken the law by falling to pay the national minimum wage to staff at a hearing of the House of Commons Business, Innovation and Skills select committee. |
| The committee heard a series of accounts of worker mistreatment, including staff being penalised for matters such as taking a short break to drink water and for taking time off work when ill – the “six strikes and you’re out” policy. Ashley claimed that he was unaware of these practices. | The committee heard a series of accounts of worker mistreatment, including staff being penalised for matters such as taking a short break to drink water and for taking time off work when ill – the “six strikes and you’re out” policy. Ashley claimed that he was unaware of these practices. |
| Thousands of Sports’ Direct warehouse workers are set to receive back pay totalling an estimated £1m for non-payment of the minimum wage, Britain’s largest union Unite confirmed on Monday. | Thousands of Sports’ Direct warehouse workers are set to receive back pay totalling an estimated £1m for non-payment of the minimum wage, Britain’s largest union Unite confirmed on Monday. |
| Sports Direct is also under investigation by HMRC. | Sports Direct is also under investigation by HMRC. |
| Ian Wright MP, chair of the Business, Innovation and Skills committee, said Ashley should be held responsible for his actions. | Ian Wright MP, chair of the Business, Innovation and Skills committee, said Ashley should be held responsible for his actions. |
| “Whistleblowers, parts of the media and a trade union shone a light on work practices at Sports Direct and what they revealed was extremely disturbing," the MP said. | “Whistleblowers, parts of the media and a trade union shone a light on work practices at Sports Direct and what they revealed was extremely disturbing," the MP said. |
| “For this to occur in the UK in 2016 is a serious indictment of the management at Sports Direct and Mike Ashley, as the face of Sports Direct, must be held accountable for these failings,” he added. | “For this to occur in the UK in 2016 is a serious indictment of the management at Sports Direct and Mike Ashley, as the face of Sports Direct, must be held accountable for these failings,” he added. |
| Britain's Institute of Directors, a body that represents business leaders and promotes high standards in the boardroom, has said problems at Sports Direct are fundamentally about weak corporate governance. | Britain's Institute of Directors, a body that represents business leaders and promotes high standards in the boardroom, has said problems at Sports Direct are fundamentally about weak corporate governance. |
| Additional reporting by Reuters | Additional reporting by Reuters |