Sports Direct Founder Mike Ashley "has insisted" he will not take the retailer private, even as he defied independent shareholders by insisting that Chair Keith Hellawell "stays on at the retailer," according to Mark Vandevelde of the FINANCIAL TIMES. A "powerful group of investors has demanded that the scandal-hit company overhaul the board" and dismiss Hellawell, a former chief constable whom many believe "incapable of standing up to the chain’s billionaire founder." Ashley, who still owns 55% of the company, turned down Hellawell’s resignation at the weekend -- "offered after a critical report by the chain’s own lawyers added to the evidence of poor employment conditions and neglectful management" at its Shirebrook warehouse (FT, 9/7). Vandevelde reported in a separate piece more than half of Sports Direct's independent shareholders "voted against the reappointment" of its chair at Wednesday's annual meeting. Excluding Ashley, 53% of the company's investors voted against Hellawell. Sports Direct said that it was "disappointed to note that the resolution to re-elect the chairman was not approved by a majority of the company's independent shareholders" (FT, 9/7). The FINANCIAL TIMES reported shares in Sports Direct fell 8% "after the opening bell in London," as the retailer warned operating profit "is likely to fall this year." Along with the various governance announcements, Sports Direct "also issued a gloomy full year forecast," saying underlying EBITA in '17 is expected to be "in the region" of £300M ($400M). This would represent "a fall of more than a fifth" compared to the year to April 24, when underlying EBITDA came in at £381.4M (FT, 9/7).
