£14tn City Group Takes Aim At Sports Direct

A powerful City group whose members manage assets worth £14tn has taken the rare step of publicly criticising corporate governance and working practices at Sports Direct.

The Investor Forum said it said it had gone public after exhausting other attempts to persuade the retailer to respond to the concerns of independent investors.

It said governance failings were "clearly resulting in declines in operating performance and long term shareholder value" at the sportswear giant, controlled by Newcastle United owner Mike Ashley.

The forum is calling on Mr Ashley to launch an independent review of the company's entire corporate governance framework, at its annual general meeting in September.

The intervention was first reported by Sky News.

It comes after Mr Ashley acknowledged a number of criticisms of working practices at the retailer at an appearance before MPs in June.

The forum said the retailer's board had shown "continued reluctance" to act in line with shareholders' views.

It said a review of working practices being carried out by solicitors RPC (NYSE: RES - news) would not be independent because the same firm already does other work for Sports Direct.

The forum added that a recently-announced external evaluation of the board "fails to reflect the breadth and magnitude of reform that is required".

Andy Griffiths, executive director of the Investor Forum, said: "It is highly unusual for the Investor Forum to consider it necessary to make public their concerns and recommendations in this way."

Mr Griffths did however welcome an announcement that it would hold a public open day at its Shirebrook headquarters the day before the AGM.

The Investor Forum was set up in 2013 after a review instigated by Sir Vince Cable.

Its members include the chairman of Marks & Spencer (Other OTC: MAKSF - news) and representatives of institutions including The Wellcome Trust‎.

Mr Ashley said in a statement that he acknowledged "the appreciation of his efforts in terms of hosting an open day (and) looks forward to meeting everyone and answering all ... questions (Other OTC: UBGXF - news) ".