Sports Direct Boss Facing Shareholder Revolt

Sports Direct boss Mike Ashley is facing a potential shareholder revolt a day after a stinging report into working conditions at the retailer.

Investors could deliver a bloody nose to the billionaire tycoon and Newcastle United owner at the company's annual general meeting.

It comes a day after a report commissioned by the company found "serious shortcomings" at its warehouse in Shirebrook, Derbyshire.

Sports Direct apologised and offered better working conditions.

But it is unclear whether its actions will be enough to appease disgruntled shareholders who have seen the share price slump by 60% over the last year.

Some want to see a wider, independent review into the way the company is run.

There have also been calls to vote against the re-election of chairman Keith Hellawell.

Sports Direct's response to criticisms includes giving directly-employed staff the option of a permanent contract instead of being on controversial zero-hours deals.

However agency workers who represent most of those at Shirebrook will miss out on this.

Sports Direct also said a "six strikes" disciplinary policy will be ditched and changes made to try to ensure there is no "culture of fear" at the warehouse.

Meanwhile it will put a workers' representative on the board to try to ensure that all staff "are treated with dignity and respect".

Sports Direct has been under the spotlight for months after a newspaper investigation exposed conditions at Shirebrook, amid claims by MPs that it was being run like a "Victorian warehouse".

It emerged that some workers were effectively being paid less than the minimum wage because they were subjected to security checks outside the times when they were clocked in for work.

Investor (LSE: 0NC5.L - news) groups have questioned the amount of power wielded by founder Mr Ashley, who owns 55% of the group and is deputy executive chairman.