Monday, August 15, 2022

Keith Hellawell faces mutiny from Sports Direct shareholders

Sports Direct chairman Keith Hellawell could face a mutiny from the company‘s shareholders at next month‘s annual general meeting.

Following a year of damaging media coverage and legal woes due to controversial working conditions in Sports Direct‘s main warehouse in Shirebrook, many influential stakeholders are planning on forcing a change in top positions in the company.

Hellawell has been chairman since 2009 but could now face a vote against his reappointment. 

During a parliamentary enquiry last year, Hellawell and founder Mike Ashley admitted that Sports Direct had grown too big for them to control.

RELATED: Sports Direct board to vote on review of worker‘s treatment

This admission further added to stakeholders‘ concerns about the sportswear retailer‘s management. 24 per cent of the board voted against his reappointment last year, but conditions have significantly worsened after Hellawell refused calls to stand down when the company fell out of the FTSE 100.

“Mike Ashley told the select committee he has not got proper command and oversight of the company, and everything we‘ve seen indicates that is a fair assessment,” a source at a large fund manager told The Guardian.

“That is a strong indictment of every member of that board.” 

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