Jon Trickett, Labour’s Shadow Business Secretary, said: “These are good steps from a company whose Dickensian working practices have shocked the country”.
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The Financial Times also reported in August that a company owned by Ashley’s brother is involved in distributing products sold by Sports Direct, while in January his daughter’s 26-year boyfriend was put in charge of the group’s vast property portfolio.
Leon Kamhi, head of responsibility at Hermes Investment Management, told City A.M. that the group still wanted to see an independent review of Sports Direct and still wanted to see Hellawell step down.
Sports Direct founder Mike Ashley’s majority shareholding means that Hellawell still had enough votes to stay.
INDEPENDENT shareholders have vented their anger at under-fire Sports Direct chairman Keith Hallawell, with 53 per cent voting against his reappointment.
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.
Hellawell said: “I take this clear message from our independent shareholders seriously, and I will do my best to address their concerns and earn their confidence over the next year”.
He said: “I had a bit of a chuckle to myself when I was watching the born-again socialist of Mike Ashley on the television last night, saying that he had learnt lessons from what happened in Shirebrook”.
Shareholder groups have criticised former West Yorkshire Police chief Hellawell as the firm has faced questions over claims of “Victorian” working practices in its shops and warehouse.
Sports Direct said today it had requested RPC, its legal advisers, to lead a further comprehensive review of working practices.
Sports Direct has announced it will scrap zero hours contracts for its employees following an investigation into the company’s treatment of its staff.
He added that workers could not rely on “bad publicity” to stamp out every instance of employers mistreating their staff and called for a ban on zero-hours contracts.
Ashley and Sports Direct’s top management on Wednesday also launched a “360-degree Review” of the business aiming to “take Sports Direct in the direction of the “Selfridges” of Sports Retail (and beyond)”, according to a slideshow.
“We would like to ask the board to commit to this course of action in order to achieve the associated objectives of structural change and long-term value creation”.
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Sports Direct has apologised for “serious shortcomings identified in working practices” at its Shirebrook warehouse, following publication of a report into its working practices by Reynolds Porter Chamberlain, who are legal advisers to the company.
