Sports Direct’s share price soars as it announces £90m share buyback
Sports Direct's share price was up 13 per cent this morning after the company announced a £90m share buyback.
The buyback represents roughly five per cent of the fitness retailer's share capital and will be taking place in the lead-up to the company's annual general meeting (AGM) on 7 September.
Read more: Four of the most jaw-dropping working practices at Sports Direct
Sports Direct said it will be seeking shareholder approval for more buybacks at the AGM.
The move comes after it emerged that Sports Direct could be badly hit by currency movements after the EU referendum because it had failed to hedge for its US dollar purchases.
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Concerns about the working conditions at Sports Direct's Shirebrook warehouse have also been weighing on the company. MPs recently slammed the company's founder, Mike Ashley, for running the site like a "Victorian workhouse" and failing to pay agency workers more than the minimum wage. Ashley is now facing an investigation by HMRC for not paying his workers enough.
Read more: Here's the most shocking testimony from the workers at Sports Direct
The MPs on the Business, Innovation and Skills committee called for Ashley to fix the "appalling" practices at the warehouse in a report this month, and accepted his invitation to visit the site for themselves.
In the report, testimony from workers showed how women at the company were forced to talk publicly about their periods and employees were made to work after their shifts were over for no pay.