Mike Ashley has lost a paper fortune of £224 million from his stake in Sports Direct after shares in the clothing chain fell following disappointing half-year figures and concerns about its business practices.
Fears of a slowdown in sales growth at the UK arm saw shares in the FTSE 100 firm fall 73p to 592.5p, wiping approximately £440 million from the market value of the sports retailer. The company has also been dogged by repeated criticism about the dominance of Ashley on the board, excessive pay rewards, and poor treatment of staff.
Sports Direct invested £2million into Direct Golf UK but, following accountancy irregularities, the business and assets of Direct Golf UK were subsequently sold to an entity controlled by Sports Direct for £299,994 on 19 October. John Andrew, the former owner of Golf Direct said to GOLF RETAILING that he was “shocked and stunned” at the events which led to him losing control of the business which he started in 1991.