Billionaire Sports Direct Founder Mike Ashley is "facing fresh calls from investors to shake up the company's board and replace the chairman," according to David Oakley of the FINANCIAL TIMES. Some shareholders have become "increasingly disillusioned" with the way Ashley, who is deputy chair and owns 55% of the shares, runs the group. They think Sports Direct Chair Keith Hellawell’s "lack of experience in the sports goods retailing business is holding back the company as trading conditions have become more difficult." One top 10 investor in the group said, "It has become clear that the chairman lacks the skill to drive Sports Direct forward. Mike Ashley needs a strong chairman to challenge him." A top 20 investor said, "Sports Direct is a running sore in corporate governance terms. Mike Ashley acts like the chief executive. He thinks the company is his own plaything and does not want to play the game as a public company." More than £2B ($2.8B) "has been wiped off" Sports Direct’s market capitalization, and it is "likely to drop out of the FTSE 100 on Wednesday when the London Stock Exchange announces its quarterly review of members." One large U.K. institutional investor, who no longer holds Sports Direct shares, said, "I sold out because I felt the company had gone as far as it could. I think Mike was good when the company was smaller, but now he is in trouble" (FT, 2/29).
