Ashley faces Sports Direct shareholder revolt

Photo of Mike Ashley courtesy of Martin Rickett/PA Wire.

Mike Ashley has come under renewed pressure over his tenure as director of Sports Direct.

Advisory firm Insitutional Shareholder Services (ISS) has added to calls for investors of the firm to vote against Ashley continuing as a director of the Shirebrook firm.

ISS said Sports Direct’s acquisition of House of Fraser has ““led to concerns about the company’s viability as a whole”.

ISS’s report also criticised Sports Direct’s acquisition failing businesses such as Debenhams and Goals Soccer Centres.

ISS said: “ISS’s policy for UK companies provides for withholding support from directors under extraordinary circumstances for material failures of governance, stewardship, or risk oversight. Recent events at Sports Direct appear to indicate that in this case, all three criteria apply. A vote against the re-election of Mike Ashley is therefore considered appropriate.”

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