Sports Direct has heard from angry
shareholders at its meeting with investors dissatisfied despite the
firm's pledge to improve working conditions for its staff.
Investors believe founder Mike Ashley, who owns 55%, wields too much control.
Shareholders
want to depose chairman Keith Hellawell. The board has stood firm,
backing Mr Hellawell despite his offer to resign over the weekend.
The meeting followed a critical report by the chain's lawyers.
Sports Direct commissioned its legal advisers Reynolds Porter Chamberlain to carry out the review
after MPs said working practices at its warehouse at Shirebrook in
Derbyshire were closer to "that of a Victorian workhouse than that of a
modern High Street retailer".
Mr Hellawell made his offer to step down over the weekend due to the
shortcomings highlighted in the report, but the board, including Mike
Ashley, asked him to stay, the company said.
"He will stay in his role in order to assist with making further improvements," Sports Direct said.
Profit fall
In
a presentation released by Sports Direct ahead of its annual meeting,
the firm insisted that despite speculation, billionaire founder Mr
Ashley had no intention of taking the company private.
It
also warned that profits - using its preferred EBITDA measure - would
be about £300m for the 2017 financial year, 21% below 2016's £381m.
Following the trading update, Sports Direct shares dropped 11% to 312p.
The sportswear firm also said it would continue to employ the boyfriend of Mike Ashley's daughter to run its property arm.
"As
previously disclosed, our property team will continue to be led by
Michael Murray and his remuneration will be decided at the board's
discretion," it said in a presentation released ahead of the meeting.
Under scrutiny
Last
year an investigation by the Guardian newspaper revealed that staff at
its Shirebook warehouse were subject to lengthy security searches which,
in some cases, resulted in their pay falling below the legal minimum
wage.
And a BBC investigation found ambulances were called out to Shirebrook 76 times in two years.
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