16th Jan 2020 14:37
(Alliance News) - Studio Retail Group PLC on Thursday said it will continue to engage with Frasers Group PLC, after the sportwear retailer and 37% shareholder rejected a proposal to reappoint the home shopping firm's chief financial officer.
Studio Retail, once Findel, added that it "continues to have full confidence" in Stuart Caldwell, whose appointment was confirmed at the July annual general meeting, after he received the backing of 58% of shareholders.
Studio Retail added: "Since that announcement, the company has engaged with representatives from Frasers Group to understand their concerns more fully and have exchanged views on the relevant issues. During the review of the company's interim report in December 2019, the audit committee again reviewed the company's accounting policies and the judgements made in applying those policies in recent years as well as the recommendations from Frasers Group.
"The board will continue to engage with Frasers Group on these points as required and will set out further details of any such dialogue in the 2020 annual report and accounts."
In July, Mike Ashley's Frasers, then Sports Direct International PLC, rejected the motion to reappoint Caldwell.
At the time, Studio Retail said Ashley's firm took exception to being labelled as a related party in Studio Retail's 2019 accounts.
Studio Retail said at the time: "Representatives from Sports Direct International made contact with the company in advance of voting and it is our understanding that they have concerns regarding the company's accounting policies, and in particular the treatment of Sports Direct International as a related party."
Shares in Studio Retail were 0.4% lower at 231.00p each in London on Thursday afternoon.
By Eric Cunha; [email protected]
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Related Shares:
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