Mike Ashley launches tirade against Sports Direct shareholders

https://www.theguardian.com/uk-news/2018/sep/14/mike-ashley-launches-tirade-against-sports-direct-shareholders

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Mike Ashley, the billionaire founder and chief executive of Sports Direct, has accused the retailer’s shareholders of stabbing him in the back and “repeatedly hounding” former chairman Keith Hellawell.

In a lengthy rant issued via an offiical statement to the stock market, Ashley said: “It is blatantly apparent that true entrepreneurs will never be accepted in the public arena. The media circus surrounding Sports Direct, including but not restricted to matters connected to our AGM [annual general meeting], only proves that whatever progress Sports Direct makes, it will always be subject to disproportionate scrutiny and misrepresentation.

“In light of the above, and despite the substantial progress made over the last few years, the shareholders have now made it extremely challenging for future engagement to take place. On the one hand they are delighted with our performance and progress, yet with the other hand they have stabbed Sports Direct and myself in the back by repeatedly hounding Keith Hellawell.”

Ashley accused shareholders of failing to support him after nearly 37% of independent shareholders who voted at Sports Direct’s annual shareholder meeting earlier this week made clear they wanted to block his reappointment.

Hellawell’s withdrawal of his intention to stand for re-election less than an hour before the meeting meant that the outcome of votes filed before it were not revealed.

Ashley’s statement published on Friday indicated that independent shareholders did not support Hellawell’s re-election, forcing the withdrawal of his intention to stand for re-election shortly before the formal meeting.

“Despite this progress and the undoubted good performance of Sports Direct led by Keith Hellawell and myself, the company’s shareholders appear to be affected by the pressure of the media and certain other organisations, and they have failed to support Sports Direct, Keith and myself, on this journey,” the statement said.

Ashley said he had “gone above and beyond to enable a significant leap forward in order to rebuild the reputation of Sports Direct in the City”.

However a string of investor advisory groups, including Glass Lewis, Pensions & Investment Research Consultants and Institutional Shareholder Services, raised concerns about governance at Sports Direct ahead of the annual meeting.

Concerns relate to Hellawell’s long tenure, the appointment of Ashley’s son-in-law as a consultant responsible for major property deals, and on-going issues with the firm’s treatment of workers. The company’s large stake in the ailing Debenhams department store group and its recent acquisition of House of Fraser after it fell into administration have also raised questions about Ashley’s strategy in the city.

But in his statement Ashley said the company’s strategy was working.

“Despite significant challenges within the retail sector in the UK and beyond, which have resulted in many retailers failing, Sports Direct has continued to perform well and exceed market expectations. As I stated on Wednesday, the acquisition of House of Fraser will be a game changer. I welcome its staff and suppliers into the Sports Direct family, and we look forward to building a brighter and significant future.”

Mike Ashley

Sports Direct International

Retail industry

London Stock Exchange

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