6th Sep 2016 06:53
LONDON (Alliance News) - Sports Direct International PLC on Tuesday said it has asked one of its legal advisers to lead a further review into the company's working practices, after completing an initial working practices report.
The sporting goods retailer said it has received the working practices report from legal adviser RPC, which captures the progress made in the last 90 days to investigate, review and address any shortcomings in employment practices.
It has now requested that RPC lead a further comprehensive study, using the report as a benchmark to identify what further action is required. The review will also include an examination of Sports Direct's corporate governance, as part of which the board will engage with shareholders to obtain their views.
Sports Direct said the review will take place over the next 12 months and will be presented to shareholders in 2017.
This comes after the UK Business, Innovation & Skills Committee found a number of issues relating to working practices at Sports Direct's Shirebrook warehouse in June. Those issues included underpayment of staff, punishments for taking short breaks during work hours and for taking time off work when ill. Health and safety practices were also found to have been breached.
The committee became involved after the retailer was accused of poor working conditions by the Guardian newspaper and the BBC last year, which prompted Sports Direct to launch its own internal investigation in December.
Since then, further concerns about Sports Direct's corporate governance have been raised. Last month, the Financial Times reported that Sports Direct has been paying some of its takings from website customers outside the UK to a delivery broker owned by the older brother of founder Mike Ashley. It said Sports Direct had not disclosed this arrangement in its published financial statements.
Also last month, the Investor Forum, which represents a number of major asset managers, said shareholders in Sports Direct had called for the company to commit to a fully independent and comprehensive review of its corporate governance.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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