Business

Sports Direct orders further review of working practices

Mike Ashley outside the Sports Direct headquarters in Shirebrook Derbyshire

Investors will also vote on a motion at the annual meeting which calls for a new independent report into the firm's working practices.

Tuesday's statement goes further than an announcement last month that the retailer was planning an external evaluation of the board for later this year.

"We believe that good human capital management, including the provision of fair living wages, robust health and safety practices and investment in training and development programmes, is the foundation of a stable and productive workforce and the maintenance of businesses' social licences to operate", he is understood to have said.

With his voice nearly breaking, he pleaded with shareholders to give him more time: "So, we're going to fix it. But please, give me a chance to fix things".

The tour followed heated exchanges at Sports Direct's AGM, where Ashley argued with union representatives, becoming angry when asked about Sports Direct's "Victorian" working practices.

Sports Direct also said on Wednesday that it expected underlying earnings for its financial year ending next April would amount to about 300 million pounds ($402 million).

City institutions such as Legal & General Investment Management and Aviva Investors have publicly voiced concerns about Sports Direct's corporate governance after a string of issues, with several ready to oppose Hellawell and other board members' re-election at today's annual meeting.

Earlier in the day it was revealed that Mr Hellawell had offered to quit over the weekend, but stayed on after the board, including Mr Ashley, unanimously backed him to continue and assist in further improvements.

It also acknowledged that its "six strikes and out" policy for agency workers has "serious shortcomings" and said it would look at changing this to "create a fair system that balances treating staff with dignity, respect and fairness and ensuring the business can deliver for its customers".

It's clear, then, that while Sports Direct is moving in the right direction, the changes have been very much forced on the company, and it remains to be seen whether Ashley really is capable of moderating his unorthodox business practices.

His criticism prompted an angry outburst from Ashley, who blamed the Unite union for the company's problems.

'This is probably your fault we are in this situation because we can't talk to you in an open manner.

'I've made a commitment to make a difference and I'm trying so don't pull me down.

But Rangers shareholder and Sports Direct chief Mike Ashley shows that some billionaire's actually like to have a spare couple of grand in cash to hand in their hip pocket the way the rest of us might have some loose change for the bus.

Following the trading update, Sports Direct shares dropped 11% to 312p.

"The company must now commit to holding a genuinely independent investigation into how the company treats its workers".

To tackle employee wellbeing, Sports Direct is formalising a welfare fund for staff, as well as improving conditions in stores.

Sports Direct has apologised and offered better working conditions.

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Sports Direct orders further review of working practices