Mike Ashley faces mounting opposition ahead of Sports Direct AGM

Sports Direct boss Mike Ashley is facing mounting opposition ahead of the company’s annual general meeting on 11 September as a third advisory firm has recommended that shareholders vote against his reelection.

Institutional Shareholder Services (ISS) joined calls from Pirc and Glass Lewis’ to oust Ashley as a director amid “significant operational and governance concerns” at the retail group.

A report by advisory firm Institutional Shareholder Services (ISS), and seen by the Guardian, 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.”

According to the Guardian, the report also said Sports Direct’s acquisition of House of Fraser last year “led to concerns about the company’s viability as a whole”, and it also raised concerns about financial deals with Ashley’s brother and his daughter’s partner, Michael Murray.

The report added that Sports Direct had not issued profit guidance for the year ahead, while highlighting Sports Direct’s acquisition of stakes in businesses that had collapsed into administration, such as Debenhams.

The news comes after it was revealed last month that Sports Direct’s auditor Grant Thornton would resign at the annual meeting on 11 September.

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