A leading shareholder advisory group, which has told investors to vote against the re-election of the Sports Direct’s chairman Keith Hellawell and Mr Ashley at Wednesday’s AGM, has criticised the timing of the report’s release.
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However, the former West Yorkshire Police chief constable said at Sports Direct’s AGM on Wednesday that he would remain in the role after the board unanimously backed him to continue and assist in further improvements.
The company has taken a number of steps to address this including ensuring that salaries are at least 15 pence per hour about the minimum wage, and changes to the Kronos timekeeping system so that workers can clock off one minute early without experiencing any wage impact.
He told the Unite official: “It’s probably your fault we’re in this mess”.
A report carried out by law firm RPC found “serious shortcomings” at Shirebrook, which Sports Direct’s board “deeply regrets and apologises for”.
There have been calls to overhaul its board of directors and launch an immediate independent review into working conditions at its factories.
The draconian regime at Shirebrook, where most workers are employed via agencies on zero-hour contracts, first came to light after an undercover investigation by the Guardian nine months ago.
Sports Directs’ major shareholders have voted against the re-appointment of the firm’s chairman.
“Sports Direct continues to be reckless with shareholders’ money and we are glad to see other investors join us in speaking out about poor governance within the company and across the industry, a clear sign of the growing influence of corporate governance amongst United Kingdom investors, following a spring of discontent at a number of major AGMs”.
Sports Direct now expects earnings to be around £300million versus the £381.4million in the year to April 24.
Russ Mould, investment director at AJ Bell, said the rejection of Hellawell’s offer to resign “will not sit well with shareholders”.
Billionaire Sports Direct boss Mike Ashley was left red-faced after emptying wads of £50 notes from his pockets during a warehouse tour.
The company added “in response to repeated speculation” that Sports Direct founder Mike Ashley had no intention of taking the company private.
Analysts added that the confusing update had undone any positive sentiment drummed up yesterday when the company pledged to end zero-hours contracts for shop staff following a report into the company’s working practices.
Although Mr Ashley has been trying to drive home the message that he is not ducking any responsibility when it came to the retailer’s problems, he sparked interest when he demonstrated the Shirebrook warehouse’s security checkpoint to investors and journalists.
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The Investor Forum, which represents £14.5trn worth of assets, has also taken the unprecedented step of going public with its concerns about the company.
