Sports Direct to review working practices and management

Earlier in September it had asked RPC to carry out a comprehensive review, after its lawyers published their initial findings on its practices.

Publishing a report on employment practices at Sports Direct in July, the Commons Business, Innovation and Skills committee said deputy executive chairman, founder and majority shareholder Mike Ashley (pictured) must be held accountable “for the appalling working conditions and practices at the retailer’s shops and at the Shirebrook warehouse in Derbyshire”.

Selfridges is well regarded within the retail industry for offering staff generous holiday entitlements, store discounts, a contributory pension scheme, life insurance, awards and performance related incentives.

Ashley said his reaction to this revelation was: “Appalled if I believed them, my instant reaction was ‘no, that sort of thing doesn’t go on at Sports Direct'”.

“I say: ‘I don’t set the minimum wage'”.

There was further embarrassment, for Mr Ashley personally, when he was forced to empty his pockets by security during a warehouse tour following the AGM – revealing a wad of £50 notes.

Initially, Sports Direct were going to have their “360 degree” review done by their law firm, Reynolds Porter Chamberlain.

The retail chain has come under huge scrutiny in the past year over workplace practices at its giant Shirebrook warehouse in Derbyshire, while a string of institutional investors have lined up to criticise the company’s corporate governance.

“I said “but I don’t set the minimum wage”.

“Should I have known more? Yes”.

Ashley, who is also the owner of Newcastle United Football Club, admitted the retailer’s working conditions should be improved.

He said: “You would be surprised how little I knew what was going on, and I think that is really where the failing was”. Jon Trickett, shadow Business Secretary, said it marked “a step in the right direction towards ridding the company of its exploitative practices once and for all”.

Union Unite added: “At last Mike Ashley and his board have grasped that they need to take some very serious steps to restore shareholder, consumer and worker confidence in their employment practices”.

“An independent review is a vital component of this company truly getting to grips with its many and serious employment problems”.