Sports Direct's chairman Keith Hellawell was last night under growing pressure to quit as the number of independent shareholders backing his dismissal increased.
A crunch vote on the future of the ex-police chief constable saw 54 per cent of indie investors calling for him to go yesterday — up by more than one per cent since September.
He faces a desperate race before then to convince shareholders he is fit to oversee the firm that has faced widespread criticism for its “Victorian workhouse” treatment of staff.
According to evidence heard by MPs in the summer, one worker gave birth in the toilets while others were paid below the minimum wage.Mr Hellawell will hold on to his job for now thanks to the backing of chief exec Mike Ashley, who owns 55 per cent of the company he founded.
Independent investors controlled 35 per cent of yesterday’s vote.
But the chairman has already said he will step down at Sports Direct’s AGM in September if a majority of independents still want him out.
He faces a desperate race before then to convince shareholders he is fit to oversee the firm that has faced widespread criticism for its “Victorian workhouse” treatment of staff.
According to evidence heard by MPs in the summer, one worker gave birth in the toilets while others were paid below the minimum wage.
Aberdeen Asset Management, a major Sports Direct investor, is known to be against Mr Hellawell continuing in the job.
Paul Lee, its head of governance, yesterday said: “This is not about personalities but the overall governance of the business.
Much needs to be delivered by the AGM to win the support of independent shareholders.
“Progress needs to be made on a genuinely independent review of working practices and governance, the company needs to deliver on its undertakings to its workforce.
“Poor governance and oversight has dogged the company for far too long and more change is required.”
But Mr Hellawell retains the “full backing” of Mr Ashley, who said: “I feel bitterly let down by those independent shareholders who refused to back Keith, given that we’ve done everything we possibly can to make a positive difference.
“I now intend to get on with the day job — and I’ll be doing that with Keith alongside me.”
Mr Ashley also raised the prospect of ditching an independent probe into its working practices.
He said the board would meet soon to “reconsider all options in relation to its review of corporate governance”.
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