Tycoon Ashley Seeks Findel Chair In City Row

The Sports Direct tycoon Mike Ashley is trying to install himself as chairman of Findel (LSE: FDL.L - news) , the online and catalogue retailer, in a controversial move that will raise fresh questions in the City about his approach to corporate governance.

Sky News has learnt that Mr Ashley has opened talks with the board of Findel about the appointment in recent weeks.

It (Other OTC: ITGL - news) is thought that the billionaire, who recently faced a committee of MPs over working practices at Sports Direct, wants to use Findel's Express Gifts subsidiary to channel Sports Direct's portfolio of sports goods brands.

Sports Direct owns nearly 30% of Findel, while other leading shareholders in the company are thought likely to support the move.

Given the size of the collective shareholdings pushing for the move, the board of Findel would face a fruitless task trying to rebuff Mr Ashley's demands.

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Some minority investors are nevertheless likely to be furious that Mr Ashley is apparently seeking control of the company without paying a premium to own a majority of the shares.

Sports Direct shareholders may also be unhappy that Mr Ashley, the owner of Newcastle United FC, could face another corporate distraction at a time when the business he built into a retailing behemoth is facing myriad challenges of its own.

The tycoon has previously attempted to place a director on the board but failed with an attempt to force through the move after requisitioning a shareholder meeting last November.

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Findel has sold Kitbag, a retailer of replica sports kit which has deals with a number of leading football clubs, while it continues to own a business focused on educational supplies.

David Sugden, who has already signalled his intention to step down as the company's executive chairman, said last month that it had made "considerable progress" after a troubled period.

"In terms of financial performance, last year was more challenging than we expected.

"We now have a well-financed group focused solely on the growth of two core businesses - Express Gifts and Findel Education," he said.

"We believe that this represents a turning point in the development of Findel, as, with the successful sale of Kitbag, we can now focus entirely on generating enhanced shareholder value from strong organic growth in our two core businesses."

A Findel spokesman declined to comment on Friday morning.

However, a source close to the situation said the company was likely to rush out a stock exchange announcement later in the day following an enquiry from Sky News.