Sports Direct faces accounts probe

The Financial Reporting Council (FRC) has begun an investigation into dealings between Sports Direct and its owner Mike Ashley’s older brother, which it says have not been declared.

The Financial Reporting Council, which regulates British companies’ accounts, says it has opened the investigation after Shirebrook-based Sport Direct most recent annual results failed to mention a business relationship with Barlin Delivery, a firm owned by John Ashley.

It was reported over the summer that Barlin acted as a broker for international deliveries.

The FRC says the dealings between to the two businesses were not disclosed as a “related party” in the company’s financial statements.

The relationship came to light in August but Sports Direct said that auditors from Grant Thornton were “comfortable that there was no related party disclosure required in Sports Direct’s historic accounts”.

Sue Almond, head of assurance, Grant Thornton UK, said: “Grant Thornton is committed to delivering the best possible assurance services to clients and continually enhancing the quality of our audits. The FRC and Grant Thornton have a common interest in promoting good corporate governance and reporting standards. We shall of course be co-operating fully with their investigation.”