Investors have also repeatedly criticised poor governance at the firm.
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Mr Ashley clashed with the Unite union, claiming it was trying to bash him as he tried to turn workers’ conditions around, and adding: “It’s your fault we’re in this mess”.
Ashley later told reporters he was sorry for what had happened.
“If I keep failing and keep failing and keep failing it will be best for everybody if I go. But I don’t want the headline “excuses”, I want the headline “sorry”.
Institute of Directors head of corporate governance Oliver Parry said: “From what we have seen in the past two years, the corporate governance standards have fallen way below what we would expect from a listed company”.
At one stage Mr Ashley – who has been lambasted for not paying staff the National Minimum Wage, using zero-hour contracts and presiding over “Victorian” working practices – pulled out a wad of fifty pound notes as he emptied his pockets during a mock search.
Sports Direct will now put that resolution to shareholders of the company at a general meeting in the next 120 days, during which time Hellawell will remain in post.
“We believe that a full and independent review of governance at the company is required, along with a commitment to publish and act on the review’s conclusions and recommendations in the next twelve months”, Euan Stirling of Standard Life, which owns 5.8 percent of Sports Direct’s equity, told the meeting.
“We are longstanding shareholders in the company and have engaged with senior executives and non-executives over many years, sadly to little effect”.
Other investors including Legal & General Group Plc, Aberdeen Asset Management and Royal London were understood to be unhappy with Hellawell’s performance.
The retailer said 2016/17 profits were likely to fall 21% due to lower margins and higher costs and that Hellawell would continue in his role as chairman, despite coming under pressure from a number of major shareholders.
Sports Direct said to the market: ‘Dr Hellawell had offered to step down over the weekend in the light of shortcomings highlighted in the report, but he will stay in his role in order to assist with making further improvements’.
Following the AGM, investors and journalists were taken on a tour of the Shirebrook site.
He said he would step down at next year’s AGM if he does not receive majority support then. He also said the firm was seeking to beef-up its board with new independent non-executive directors.
The meeting was predictably lively, with the BBC reporting that shareholders momentarily cornered Ashley, who also owns Newcastle United.
But its shares crashed 30¼p to 319¼p as it forecast underlying annual pre-tax earnings of about £300million, down from last year’s £381.4million.
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And the company’s share price reflected this ire, with the stock closing down by 9.02 per cent at 317.7p.
