9th Oct 2015 13:37
LONDON (Alliance News) - Sports Direct International PLC's Chief Executive David Forsey has been charged with a criminal offence relating to the group's controversial pre-pack administration of its fashion retailer USC, according to a report by the Guardian.
The Guardian reported that Forsey is accused of failing to notify authorities of plans to lay off warehouse staff in Scotland, around 200 of whom were given just 15 minutes' notice by the administrator in January that they were losing their jobs.
Forsey's case is scheduled to be heard at Chesterfield magistrates' court next week, according to the newspaper.
The UK Insolvency Service reportedly said: "We can confirm that criminal proceedings have been commenced against David Michael Forsey. He is charged with an offence contrary to section 194 of the Trade Union and Labour Relations (Consolidation) Act 1992. The investigation into the conduct of the directors is ongoing. The enquiries are at an early stage and given the criminal proceedings it is not possible nor would it be appropriate to comment any further."
http://www.theguardian.com/business/2015/oct/09/sports-direct-chief-executive-david-forsey-charged-usc-administration
This comes after the Guardian also reported that Sports Direct Founder Mike Ashley was criticised for "disgraceful and unlawful employment practices" when 50 former USC employees were awarded compensation.
The workers apparently received a "protective award" equivalent to 90 days' pay, after Glasgow's employment tribunal heard how USC staff had only been informed that the company?s warehouse in Dundonald, Ayrshire would close 15 minutes before it was shut.
Under employment law, workers should be given at least 30 days' consultation before losing their jobs.
http://www.theguardian.com/business/2015/oct/09/sports-directs-mike-ashley-under-fire-usc-employment-tribunal-ayrshire
Shares in Sports Direct were trading down 4.2% at 708.00 pence Friday afternoon, the worst performer in the FTSE 100.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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