Shareholders vote against reappointment of Sports Direct chairman
Independent shareholders have voted against the reappointment of Keith Hellawell as chairman of Sports Direct. Including abstentions, 63% of shareholders opposed the reappointment. However, founder Mike Ashley cast his 55% shares in support of Hellawell, meaning that the chairman will remain in post until a new vote is called in 90 days. Hellawell has stated that he will resign next year if he is again opposed by shareholders. The AGM was marked by clashes between Ashley and the Unite union.
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Sports Direct: We want to be like Selfridges

A late PS: Mike Ashley and his big bundle of notes make the front page of several papers tomorrow:

7 Sept 2016 19.11 BST Closing summary: Blaming and Shaming at Sports Direct

It’s been a day of contrition, confrontation and humiliation for Sports Direct; and the company faces more rough times unless it actually delivers the better working practices it has promised.

Here are the key points.

1) Mike Ashley, Sports Direct’s founder, has pleaded for time to turn his company around.

Speaking after a stormy AGM, Ashley told reporters that:

We’re going to fix it. Please give us 12 months to fix it. What difference is 12 months? We’ve done some good work in 90 days - lets do some fantastic work in 12 months.

2) Ashley also hinted that his own future is now on the line:

In the end, if I keep failing and keep failing and keep failing, it’ll be best for everybody if I go. But give me some time to see if I can fix the problems first, please.

3) But City shareholders have lost patience with his boardroom sidekick, chairman Keith Hellawell. A stunning 53% of independent investors voted against Hellawell’s re-election, pushing for change at the top of the company.

Hellawell claims he can regain their trust over the next 12 months, but will resign if he fails.

Investors aren’t impressed, though; Legal & General have demanded a new chairman right away:

“At absolute minimum, we believe the current chairman should step down immediately and an external, independent appointment made to oversee management and protect the interests of all stakeholders – including employees, suppliers, and shareholders.”

4) Sports Direct tried to win some support from the media, and investors, by allowing them to tour part of the Shirebrook site. But the takeaway moment from the trip was the pile of cash which emerged from Ashley’s pocket. I”m starting to suspect it may be a cunning ploy to distract us....

5) Earlier in the day, Ashley didn’t do a brilliant job of keeping his cool during the company’s annual general meeting.

The lowest point was when he blamed the Unite union for causing the problems at Shirebrook, and for ‘showboating’ by criticising his offer of permanent contracts for casual detail staff.

He declared:

This is probably your fault we are in this mess because we can’t talk to you. I made a commitment to make a difference, I am trying, don’t pull me down. I accept I have made some errors and I accept I can learn something. Please don’t do the whole showboating thing, it will make me turn away and it’s the people who work in Sports Direct who suffer.”

That outburst suggests that the pressure and criticism may be getting to Ashley. Perhaps he also hoped for more praise for his turnaround plan, which aims to emulate glossier retailers like Selfridge’s.

If so, he’ll need to work minor miracles over the next 12 months to win bouquets from today’s critics. It’s not impossible - but with profits falling, Ashley will need all his retail skills to pull it off.

That’s all from me tonight (although I may pop back later to add any new developments). Thanks for reading and commenting. GW.