This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/business/2016/sep/20/sports-direct-bows-to-pressure-and-agrees-to-independent-review

The article has changed 6 times. There is an RSS feed of changes available.

Version 0 Version 1
Sports Direct bows to pressure and agrees to independent review Sports Direct bows to pressure and agrees to independent review
(35 minutes later)
Sports Direct has bowed to shareholder pressure by agreeing to an independent review of its working practices and corporate governance.Sports Direct has bowed to shareholder pressure by agreeing to an independent review of its working practices and corporate governance.
The company had said the law firm RPC, which carried out a preliminary review published this month, would conduct a further investigation. The company had said the law firm Reynolds Porter Chamberlain (RPC), which carried out a preliminary review published this month, would conduct a further investigation.
However, after strong shareholder backing for an independent review at the Sports Direct AGM this month, the company has now confirmed that “an independent party other than RPC” will conduct the review. However, after strong shareholder backing for an independent review at the Sports Direct AGM this month, the company has now said that “an independent party other than RPC” will conduct the review.
RPC has previously worked extensively for Sports Direct and its majority owner, Mike Ashley. Mike Ashley, Sports Direct’s founder and majority owner, was forced to look into his company’s working practices after a Guardian investigation exposed a climate of fear at its warehouse in Shirebrook, Derbyshire. MPs later compared working practices at Shirebrook to a Victorian workhouse.
A union resolution at Sports Direct’s annual general meeting calling for a fully independent review received strong shareholder backing. After the AGM on 7 September, large independent shareholders told the board they wanted the review to be carried out by an independent party. RPC has worked extensively for Sports Direct and Ashley and the company is one of its biggest clients. Its report, published the day before Sports Direct’s AGM, criticised the board and prompted Ashley to apologise to staff for practices that were “potentially oppressive” at its warehouse.
A union resolution at Sports Direct’s annual general meeting calling for a fully independent review received strong shareholder backing. After the AGM on 7 September, large independent shareholders told the board they wanted the review carried out by an independent party.
The retailer said: “Sports Direct today announces that the forthcoming ‘360-degree’ review of working practices and corporate governance which was announced on 6 September 2016 and which was to be led by RPC will now be led by an independent party other than RPC.”The retailer said: “Sports Direct today announces that the forthcoming ‘360-degree’ review of working practices and corporate governance which was announced on 6 September 2016 and which was to be led by RPC will now be led by an independent party other than RPC.”
The company did not say who would conduct the review and said it would consult shareholders about its terms and timing. The company did not say who would conduct the review and said it would consult shareholders about its terms and timing. Sports Direct had said the review would take up to a year but shareholders, coordinated by the Investor Forum, want it completed more quickly.
The retailer also said a worker representative to the board would be elected by all staff “directly engaged or employed by Sports Direct”. The retailer also said that a worker representative to the board would be elected by all staff “directly engaged or employed by Sports Direct”. Ashley announced plans to put an employee on the board to show his willingness to listen to staff after the Guardian’s revelations and a campaign by the Unite union battered his company’s reputation.
An unprecedented 57% of independent shareholders failed to support Sports Direct chairman Keith Hellawell at the AGM, but Ashley insisted his chairman was staying put, for at least another year, and they would work together to improve the way the sports chain is managed.
At the sometimes bad-tempered AGM, Ashley at one point said the retailer’s problems had been caused by the Unite union and hinted that he might himself walk away from the company he founded in 1982 if he was unable to improve the way the firm is run.
There was also a major protest vote against Sports Direct’s three other non-executive directors. More than 30% of independent shareholders failed to back their reappointment amid widespread concern that they had not held Ashley to account.
At the packed meeting of more than 120 people at Sports Direct’s head office, alongside its warehouse in Shirebrook, Ashley was challenged by investors and unions over the treatment of workers.