Mike Ashley to run Sports Direct as chief executive quits

Mike Ashley is taking over as chief executive of Sports Direct following the resignation of his closest aide, Dave Forsey, as the retailer battles an image crisis.

The company - under fire from unions, investors and politicians over working practices and the way it has been run - said on Friday that Mr Ashley was to assume control of the business with immediate effect.

The tycoon was previously executive deputy chairman and took no salary despite a hands-on approach to the business.

He is the firm's biggest shareholder. The share price rose nearly 6% as investors broadly welcomed the development.

The company said on Friday that Mr Forsey, who had been with Sports Direct for 32 years, had resigned the previous day.

He said: "I have given my entire working life to the company and in return the company has given me amazing opportunities and experiences. I wish everyone at Sports Direct well in the future."

The firm said he had agreed to assist a "smooth handover" to Mr Ashley and the rest of the existing executive management team.

Mr Ashley said: "I feel like I have lost my right arm, but I do hope to have the opportunity to work with Dave again in the future."

The news was announced just days after Sports Direct bowed to investor pressure by pledging an independent review of its corporate governance and working conditions.

That followed a bruising AGM which also left Mr Ashley red-faced after he pulled out wads of personal cash, in £50 notes, from his pockets during a security check.

The climbdown followed months of pressure from City institutions concerned about a slump in Sports Direct's share price and the extent of Mr Ashley's control.

Sports Direct had already announced new safeguards to combat allegations of Victorian workhouse conditions at the firm's Shirebrook warehouse in Derbyshire, including the bullying of staff and aggressive rules.

Mr Ashley has since pledged to put right all the issues of concern for the business.

Among the shareholders welcoming Mr Forsey's departure was Hermes Investment Management, which told Sky News: "We are very pleased with the appointment of Mike Ashley as CEO as it brings clarity to executive accountability at Sports Direct.

"This is another positive step forward by the company in addressing serious concerns around corporate governance practices which have been raised by investors."