Sports Direct chief charged over lay-offs

The government has charged Sports Direct chief executive Dave Forsey over criminal offences regarding the company’s handling of the administration of chain USC.

The Insolvency Service confirmed yesterday that it had begun criminal proceedings against David Forsey, 49, for “an offence contrary to section 194 of the Trade Union and Labour Relations Act 1992”.

The criminal proceedings are the latest twist in a long-running saga exposed by The Independent where staff at USC’s Dundonald warehouse were made to pack and ship stock before being given just 15 minutes’ notice that they would lose their jobs.

“The investigation into the conduct of the directors is ongoing”.

It is understood Forsey was sent his summons in July and his case is scheduled to be heard at Chesterfield magistrates’ court next week. “We will not be commenting until the criminal proceedings have been concluded”, said the Insolvency Service.

The judgement found that there had been “no discussion or consultation regarding alternatives of information as to redundancies”.

The Trade Union Act says that an employer must give 30 days’ notice to the secretary of state of proposals to make 20 or more staff redundant, or 90 days for 100 or more staff.

It is understood that the payouts could run to thousands of pounds for each employee.

Sports Direct boss Mike Ashley has received huge criticism over “disgraceful and unlawful employment practices” by former USC workers who were given 15 minutes notice that the warehouse would close.

During the hearing, which Mr Ashley claimed he was too busy to attend, Mr Hellawell revealed he was only informed of the administration a day before it was pushed through, despite executive board members including Mr Forsey and Mr Ashley discussing it with administrators for at least two months.

The case emerged as former staff at USC won a civil legal battle against Sports Direct for redundancy pay.

It eventually fell on former drugs tsar Dr Keith Hellawell, chairman of Sports Direct global to face the Commons Scottish Affairs Select Committee over the West Coast Capital (USC) Ltd meltdown.