JD Sports is facing questions over the multi-million pound non-compete agreement signed with former chief executive Peter Cowgill.
There is speculation over Cowgill’s exit package with the retailer after he became a significant shareholder in a sports equipment manufacturer.
The Telegraph reports that under the non-compete agreement signed in September last year, JD Sports agreed to pay Mr Cowgill £3.5m to prevent him from working for or advising any competitors for the next two years.
It comes after reports he was being considered for a role at rival sportswear retailer Footasylum.
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Cowgill’s recent investment in a company called Fortitude Brands, which trades under the brand Pulseroll, has put the non-compete clause under the microscope.
The ex-JD chief has a stake of at least 25% stake in the business and was appointed as the person with significant control on October 18, according to Companies House filings.
Cliff Weight, a member of the campaign group ShareSoc – which represents shareholders in JD Sports – questioned whether Mr Cowgill was “honouring the spirit” of his non-compete agreement.
Like Pulseroll, JD Sports sells foam rollers and massage guns. However, the retailer declined to comment on whether the move violated its agreement.
Back in May last year, Cowgill shocked the retail world by stepping down down as executive chairman of JD Sports amid scrutiny over the corporate governance of the firm.
Following his departure, JD Sports said that its “internal infrastructure, governance and controls” had not “evolved” to the same extent as the business.
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