Anger at the AGM

A shareholder revolt at Sport’s Direct has left owner and found Mike Ashley questioning his position, after angry scenes at the company’s annual general meeting.

In a bizarre outburst during the packed shareholder meeting, in which investors queued up to criticise the firm’s corporate governance and work practises, Ashley accused Unite of being at the root of the company’s troubles.

A visibly under-pressure Ashley launched the attack, after his promise to offer retail staff on zero-hours contracts 12-hour ones instead, was called into question by Unite assistant general secretary Steve Turner, during the meeting at Sports Direct’s Derbyshire headquarters.

Turner said he doubted the offer would be taken up by many workers, because most of them already work more than 12 hours each week. Ashley took offence at Turner’s challenge, saying that those with 12 hour contracts would still be able to work longer if they wanted to.

Ashley shouted, “It is probably your fault we’re in this mess. Don’t try to pull me down while I’m trying.”

Turner also said the company, which has promised to make a number of improvements for employees, needed to deal with tens of hundreds of agency warehouse workers whose positions have not changed.

“The agencies are a huge concern for us,” Turner told the meeting. “They are where we see the abuse and it’s all going on under Sports Direct’s banner.”

Anger

Despite pledges and contrition from Sports Direct’s board, shareholders expressed anger at the meeting, due to months of falling revenues and a public scandal over what has been described by MPs as “Victorian workhouse” conditions for employees.

Sports Direct’s second biggest investor, Standard Life Investments voted against the reappointment of all non-executive directors on the board, with the Railway Pension fund following suit.

Railway Pension fund chief executive Chris Hitchen said, “It is a serious decision not to support an entire board. However we have lost all confidence that the board of Sports Direct is acting in the interest of all shareholders.”

Investors also voted overwhelmingly against majority shareholder Ashley’s wish to keep Keith Hellawell as the firm’s chairman.

Following the meeting, during a tour of the factory Ashley told journalists, “In the end, if I keep failing and keep failing and keep failing, it’ll be best for everybody if I go.

“But give me some time to see if I can fix the problems first, please.”

Speaking after the meeting, Steve Tuner called Ashley’s outburst at Unite unfortunate and said it was clear things needed to change.

Turner said, “Investors have sent a robust message to the Sports Direct board that it has much more to do to reform and regain confidence.

“As well as corporate governance Sports Direct must urgently work with Unite to put in place a framework which moves the thousands of temporary agency workers at Shirebrook on to secure, permanent direct contracts.

“We remain committed to work constructively with Sports Direct to help restore dignity and respect to the work place.”