Sports Direct CEO Dave Forsey resigned last week. While nothing was said in the press release, this might be some implicit recognition of responsibility for the abysmal working practices at the firm, since Forsey has spent his entire working life there and has been CEO since 2007 and managing director of its predecessor firm since 2001.
Unfortunately, Sports Direct founder Mike Ashley—deemed by the House of Commons enquiry as an integral part of the problem at the company—has taken over as CEO. How such a move would change employment practices at the company remains to be seen. In the announcement, Ashley said: “I feel like I have lost my right arm, but I do hope to have the opportunity to work with Dave again in the future.” In fact, at its 7 September annual general meeting (AGM), 53 percent of independent shareholders voted against the reelection of the chairman, Keith Hellawell, so it appears that investors would rather Ashley had lost his left arm as well as his right. Ashley owns 55 percent of Sports Direct, and it is a requirement of U.K. Company Law that the election of directors, among a number of other issues, must be approved by the majority of independent shareholders.
