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You can find the current article at its original source at https://www.theguardian.com/business/live/2016/sep/07/sports-direct-annual-general-meeting-showdown-mike-ashley-business-live
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| Version 18 | Version 19 |
|---|---|
| Sports Direct faces critics at AGM showdown – as it happened | |
| (35 minutes later) | |
| 7.11pm BST | |
| 19:11 | |
| Closing summary: Blaming and Shaming at Sports Direct | |
| It’s been a day of contrition, confrontation and humiliation for Sports Direct; and the company faces more rough times unless it actually delivers the better working practices it has promised. | |
| Here are the key points. | |
| 1) Mike Ashley, Sports Direct’s founder, has pleaded for time to turn his company around. | |
| Speaking after a stormy AGM, Ashley told reporters that: | |
| We’re going to fix it. Please give us 12 months to fix it. What difference is 12 months? | |
| We’ve done some good work in 90 days - lets do some fantastic work in 12 months. | |
| 2) Ashley also hinted that his own future is now on the line: | |
| In the end, if I keep failing and keep failing and keep failing, it’ll be best for everybody if I go. But give me some time to see if I can fix the problems first, please. | |
| 3) But City shareholders have lost patience with his boardroom sidekick, chairman Keith Hellawell. A stunning 53% of independent investors voted against Hellawell’s re-election, pushing for change at the top of the company. | |
| Hellawell claims he can regain their trust over the next 12 months, but will resign if he fails. | |
| Investors aren’t impressed, though; Legal & General have demanded a new chairman right away: | |
| “At absolute minimum, we believe the current chairman should step down immediately and an external, independent appointment made to oversee management and protect the interests of all stakeholders – including employees, suppliers, and shareholders.” | |
| 4) Sports Direct tried to win some support from the media, and investors, by allowing them to tour part of the Shirebrook site. But the takeaway moment from the trip was the pile of cash which emerged from Ashley’s pocket. I”m starting to suspect it may be a cunning ploy to distract us.... | |
| 5) Earlier in the day, Ashley didn’t do a brilliant job of keeping his cool during the company’s annual general meeting. | |
| The lowest point was when he blamed the Unite union for causing the problems at Shirebrook, and for ‘showboating’ by criticising his offer of permanent contracts for casual detail staff. | |
| He declared: | |
| This is probably your fault we are in this mess because we can’t talk to you. I made a commitment to make a difference, I am trying, don’t pull me down. | |
| I accept I have made some errors and I accept I can learn something. Please don’t do the whole showboating thing, it will make me turn away and it’s the people who work in Sports Direct who suffer.” | |
| That outburst suggests that the pressure and criticism may be getting to Ashley. Perhaps he also hoped for more praise for his turnaround plan, which aims to emulate glossier retailers like Selfridge’s. | |
| If so, he’ll need to work minor miracles over the next 12 months to win bouquets from today’s critics. It’s not impossible - but with profits falling, Ashley will need all his retail skills to pull it off. | |
| That’s all from me tonight (although I may pop back later to add any new developments). Thanks for reading and commenting. GW. | |
| 6.40pm BST | 6.40pm BST |
| 18:40 | 18:40 |
| Guardian reporter: A peculiar tour of Shirebrook | Guardian reporter: A peculiar tour of Shirebrook |
| Simon Goodley | Simon Goodley |
| My colleague Simon Goodley paid a return visit to Sports Direct today, nearly a year after going undercover at the Shirebrook site to expose its failings. | My colleague Simon Goodley paid a return visit to Sports Direct today, nearly a year after going undercover at the Shirebrook site to expose its failings. |
| And he’s none too impressed with the company’s attempt to charm journalists and investors today by showing them a shiny new operation. | And he’s none too impressed with the company’s attempt to charm journalists and investors today by showing them a shiny new operation. |
| Simon explains: | Simon explains: |
| The show...was a disappointment. This was not a tour of the huge, bustling, Shirebrook warehouse where Guardian undercover reporters revealed last year how the company had broken the law by paying its workers less than the national minimum wage. | The show...was a disappointment. This was not a tour of the huge, bustling, Shirebrook warehouse where Guardian undercover reporters revealed last year how the company had broken the law by paying its workers less than the national minimum wage. |
| Instead, the crowd of around 200 observers, all dressed in bright yellow hi-vis jackets, were shown around Sports Direct’s spacious, brand new, facility, gleaming white walls and all. It even smelt new and freshly painted - meaning it was tempting to conclude that shareholders were actually witnessing a whitewash at the workhouse. | Instead, the crowd of around 200 observers, all dressed in bright yellow hi-vis jackets, were shown around Sports Direct’s spacious, brand new, facility, gleaming white walls and all. It even smelt new and freshly painted - meaning it was tempting to conclude that shareholders were actually witnessing a whitewash at the workhouse. |
| Despite the pledges of a new transparency, the spectators barely saw any of Sports Direct’s 4,000 warehouse workers (had they been abolished along with the six strikes and you’re out policy?). And when workers were spotted, the visitors were separated from them by a line of large Sports Direct security staff. Not that that mattered. Those who broke through reported that the workers were unanimous: Shirebrook was actually a splendid place to work. | Despite the pledges of a new transparency, the spectators barely saw any of Sports Direct’s 4,000 warehouse workers (had they been abolished along with the six strikes and you’re out policy?). And when workers were spotted, the visitors were separated from them by a line of large Sports Direct security staff. Not that that mattered. Those who broke through reported that the workers were unanimous: Shirebrook was actually a splendid place to work. |
| If that felt strange, there were other peculiar differences too. | If that felt strange, there were other peculiar differences too. |
| The tannoy - which when the Guardian and Channel 4 had visited last year occasionally harangued staff - never barked any orders at all, either in English or Polish. | The tannoy - which when the Guardian and Channel 4 had visited last year occasionally harangued staff - never barked any orders at all, either in English or Polish. |
| And the only person to be searched was Mike Ashley himself.... | And the only person to be searched was Mike Ashley himself.... |
| 6.23pm BST | 6.23pm BST |
| 18:23 | 18:23 |
| Here’s a video clip of Mike Ashley’s search today -- for anyone who missed the fun and games earlier: | Here’s a video clip of Mike Ashley’s search today -- for anyone who missed the fun and games earlier: |
| 6.14pm BST | 6.14pm BST |
| 18:14 | 18:14 |
| 5.46pm BST | 5.46pm BST |
| 17:46 | 17:46 |
| The Press Association have a good take on the Sports Direct tour - and the moment Mike Ashley stunned reporters (and perhaps staff too) by pulling out that wad of £50s: | The Press Association have a good take on the Sports Direct tour - and the moment Mike Ashley stunned reporters (and perhaps staff too) by pulling out that wad of £50s: |
| Mike Ashley was sorry - this he wanted to make clear. | Mike Ashley was sorry - this he wanted to make clear. |
| As he conducted a tour of his Sports Direct empire, he drove home the message that he was not ducking any responsibility when it came to the retailer’s problems. | As he conducted a tour of his Sports Direct empire, he drove home the message that he was not ducking any responsibility when it came to the retailer’s problems. |
| Sports Direct had grown too big too quickly and its Shirebrook warehouse was not built for the age of internet shopping, he said. It was a point he made repeatedly. | Sports Direct had grown too big too quickly and its Shirebrook warehouse was not built for the age of internet shopping, he said. It was a point he made repeatedly. |
| He was happy to see headlines saying he was apologetic about the retailer’s problems, but not that he was making excuses, he added. | He was happy to see headlines saying he was apologetic about the retailer’s problems, but not that he was making excuses, he added. |
| But his sense of regret at the controversies swirling around Sports Direct did not dull his sense of mischief. | But his sense of regret at the controversies swirling around Sports Direct did not dull his sense of mischief. |
| As he weaved his way through the cavernous halls, he said: “I know size is no excuse and that is not a joke so please don’t any of the reporters say I am referring to anything else because I am not.” | As he weaved his way through the cavernous halls, he said: “I know size is no excuse and that is not a joke so please don’t any of the reporters say I am referring to anything else because I am not.” |
| Despite journalists and angry investors having been a thorn in his side over recent months, he appeared to enjoy showing them the site where working practices have generated so much controversy. | Despite journalists and angry investors having been a thorn in his side over recent months, he appeared to enjoy showing them the site where working practices have generated so much controversy. |
| A swarm of investors and journalists dressed in high-visibility jackets were shown the canteen, the vast areas for picking stock and the security checkpoint. | A swarm of investors and journalists dressed in high-visibility jackets were shown the canteen, the vast areas for picking stock and the security checkpoint. |
| The retail tycoon also took it upon himself to demonstrate a Sports Direct security check - a previous source of complaints by some staff. | The retail tycoon also took it upon himself to demonstrate a Sports Direct security check - a previous source of complaints by some staff. |
| Pulling off his jacket, he then emptied his pockets, pulling out a wad of fifty pound notes and tossing them into a security tray. | Pulling off his jacket, he then emptied his pockets, pulling out a wad of fifty pound notes and tossing them into a security tray. |
| When someone pointed out it was a “lot of cash”, he replied: “Yes I’ve been to the casino,” before adding: “Now don’t please write that.” | When someone pointed out it was a “lot of cash”, he replied: “Yes I’ve been to the casino,” before adding: “Now don’t please write that.” |
| Mike Ashley gets searched... Yes. That is a massive wad of £50 notes he just took out his pocket pic.twitter.com/zV78Qdfmec | Mike Ashley gets searched... Yes. That is a massive wad of £50 notes he just took out his pocket pic.twitter.com/zV78Qdfmec |
| 5.36pm BST | 5.36pm BST |
| 17:36 | 17:36 |
| Commentators have been arguing for years that British business should learn from their German rivals, and put workers in the boardroom. | Commentators have been arguing for years that British business should learn from their German rivals, and put workers in the boardroom. |
| Prime minister Theresa May even expressed support for the idea, putting it higher on the political agenda. So Sports Direct could be ahead of a trend. | Prime minister Theresa May even expressed support for the idea, putting it higher on the political agenda. So Sports Direct could be ahead of a trend. |
| But Roger Bull, head of the Employment Law team at independent UK law firm, Burges Salmon LLP, suggests getting the idea into law will be hard: | But Roger Bull, head of the Employment Law team at independent UK law firm, Burges Salmon LLP, suggests getting the idea into law will be hard: |
| The appointment by Sports Direct of an employee to the Board is an astute move, no doubt intended to demonstrate that company’s willingness to embrace change and encourage employee participation. | The appointment by Sports Direct of an employee to the Board is an astute move, no doubt intended to demonstrate that company’s willingness to embrace change and encourage employee participation. |
| “However, the Government has a far tougher task if it wants to legislate on employee Board appointments given the many questions that would need addressing, including the size of the company to whom such rules would apply, the number of employee directors, the nature and status of the role of employee director, the nature of the Board on which they would sit, the selection/election process, confidentiality, trade union involvement and pay etc.” | “However, the Government has a far tougher task if it wants to legislate on employee Board appointments given the many questions that would need addressing, including the size of the company to whom such rules would apply, the number of employee directors, the nature and status of the role of employee director, the nature of the Board on which they would sit, the selection/election process, confidentiality, trade union involvement and pay etc.” |
| 5.24pm BST | 5.24pm BST |
| 17:24 | 17:24 |
| Sports Direct’s shares have endured a bad day, closing down almost 9%. | Sports Direct’s shares have endured a bad day, closing down almost 9%. |
| That’s primarily due to this morning’s admission that profits will probably fall 20% this year, from £380m to £300m. | That’s primarily due to this morning’s admission that profits will probably fall 20% this year, from £380m to £300m. |
| But investors are also unimpressed that Keith Hellawell is sticking around as chairman, despite today’s historic revolt from the City. | But investors are also unimpressed that Keith Hellawell is sticking around as chairman, despite today’s historic revolt from the City. |
| 5.07pm BST | 5.07pm BST |
| 17:07 | 17:07 |
| Sky News’s Charlotte Lomas has spotted a fresh innovation at Sports Direct -- a list of its best stock pickers. | Sky News’s Charlotte Lomas has spotted a fresh innovation at Sports Direct -- a list of its best stock pickers. |
| The top worker stands to win a £25 voucher -- all part of the new regime more carrot, less stick. | The top worker stands to win a £25 voucher -- all part of the new regime more carrot, less stick. |
| Ashley at ease, cracking a few jokes as he leads us around the warehouse. Stumble across this... pic.twitter.com/I8FW4jthT2 | Ashley at ease, cracking a few jokes as he leads us around the warehouse. Stumble across this... pic.twitter.com/I8FW4jthT2 |
| 5.04pm BST | 5.04pm BST |
| 17:04 | 17:04 |
| Earlier, my colleague Sarah Butler tweeted more interesting comments from Ashley from the warehouse tour: | Earlier, my colleague Sarah Butler tweeted more interesting comments from Ashley from the warehouse tour: |
| John Lewis is something to look up to from a people point of view says Ashley.'I believe it us the best employer in the business' | John Lewis is something to look up to from a people point of view says Ashley.'I believe it us the best employer in the business' |
| Ashley says "no doubt this publicity affects our retail stores. It must have a negative impact but how big I don't know.." | Ashley says "no doubt this publicity affects our retail stores. It must have a negative impact but how big I don't know.." |
| Ashley says not right to say he's only worried abt bottom line. sports Dct "not anywhere near as bad a business as people try to portray it" | Ashley says not right to say he's only worried abt bottom line. sports Dct "not anywhere near as bad a business as people try to portray it" |
| 4.56pm BST | 4.56pm BST |
| 16:56 | 16:56 |
| Here’s the full quote from Sacha Sadan, Director of Corporate Governance at Legal & General Investment Management, calling for Hellawell to quit Sports Direct. | Here’s the full quote from Sacha Sadan, Director of Corporate Governance at Legal & General Investment Management, calling for Hellawell to quit Sports Direct. |
| “Following Sports Direct’s recent report on its own shortcomings, as well as the large independent shareholder vote against the chairman’s re-election, it is clear the Board needs to enact significant change in order to earn back shareholder trust. | “Following Sports Direct’s recent report on its own shortcomings, as well as the large independent shareholder vote against the chairman’s re-election, it is clear the Board needs to enact significant change in order to earn back shareholder trust. |
| “At absolute minimum, we believe the current chairman should step down immediately and an external, independent appointment made to oversee management and protect the interests of all stakeholders – including employees, suppliers, and shareholders.” | “At absolute minimum, we believe the current chairman should step down immediately and an external, independent appointment made to oversee management and protect the interests of all stakeholders – including employees, suppliers, and shareholders.” |
| 4.49pm BST | 4.49pm BST |
| 16:49 | 16:49 |
| The Trade Union Share Owners group has hailed the rebellion against Keith Hellawell today. | The Trade Union Share Owners group has hailed the rebellion against Keith Hellawell today. |
| It believes the revolt by independent investors is a record - and one which other firms should learn from. | It believes the revolt by independent investors is a record - and one which other firms should learn from. |
| TUSO Chair Janet Williamson says: | TUSO Chair Janet Williamson says: |
| “Today’s shareholder uprising should act as a cautionary tale to other employers. Sports Direct’s reputation has been dragged through the mud and its share price has taken a hammering. | “Today’s shareholder uprising should act as a cautionary tale to other employers. Sports Direct’s reputation has been dragged through the mud and its share price has taken a hammering. |
| “The company must now commit to holding a genuinely independent investigation into how the company treats its workers. Without wholesale changes to working conditions, Sports Direct risks finding itself back in the dock. | “The company must now commit to holding a genuinely independent investigation into how the company treats its workers. Without wholesale changes to working conditions, Sports Direct risks finding itself back in the dock. |
| “Hopefully this vote will usher in a new era of investors working with unions to challenge bad employment practices.” | “Hopefully this vote will usher in a new era of investors working with unions to challenge bad employment practices.” |
| 4.40pm BST | 4.40pm BST |
| 16:40 | 16:40 |
| Steve Turner, Unite general secretary, has responded to the shareholder revolt against Keith Hellawell today: | Steve Turner, Unite general secretary, has responded to the shareholder revolt against Keith Hellawell today: |
| “Investors have sent a robust message to the Sports Direct board that it has much more to do to reform and regain confidence. | “Investors have sent a robust message to the Sports Direct board that it has much more to do to reform and regain confidence. |
| As well as corporate governance Sports Direct must urgently work with Unite to put in place a framework which moves the thousands of temporary agency workers at Shirebrook on to secure, permanent direct contracts. We remain committed to work constructively with Sports Direct to help restore dignity and respect to the work place.” | As well as corporate governance Sports Direct must urgently work with Unite to put in place a framework which moves the thousands of temporary agency workers at Shirebrook on to secure, permanent direct contracts. We remain committed to work constructively with Sports Direct to help restore dignity and respect to the work place.” |
| 4.20pm BST | 4.20pm BST |
| 16:20 | 16:20 |
| City firm Legal & General aren’t convinced by Ashley and Hellawell’s arguments. | City firm Legal & General aren’t convinced by Ashley and Hellawell’s arguments. |
| They want the chairman to quit now, having lost the support of independent investors today. | They want the chairman to quit now, having lost the support of independent investors today. |
| L&G calls on Sports Direct chair Hellawell to step down immediately after more than half of indie shareholders vote against his re-election | L&G calls on Sports Direct chair Hellawell to step down immediately after more than half of indie shareholders vote against his re-election |
| L&G: " it is clear the Board needs to enact significant change in order to earn back shareholder trust" | L&G: " it is clear the Board needs to enact significant change in order to earn back shareholder trust" |
| 4.07pm BST | 4.07pm BST |
| 16:07 | 16:07 |
| Q: Final question, how do you feel about Iain Wright MP claiming that you and Sir Philip Green are ‘two peas in a pod’? | Q: Final question, how do you feel about Iain Wright MP claiming that you and Sir Philip Green are ‘two peas in a pod’? |
| No, I’m far better looking than him, Ashley shoots back, before heading back into the HQ. | No, I’m far better looking than him, Ashley shoots back, before heading back into the HQ. |