Sports Direct: What’s gone wrong for Mike Ashley?
Even for an unpredictable retail tycoon like Mike Ashley, today’s strange turn of events is unprecedented.
Sports Direct was set to release its full-year figures at 7am this morning, before suddenly postponing its statement and cancelling media interviews.
Read more: Confusion reigns as Sports Direct delays annual results yet again
With no explanation given as to why financial results are being delayed, pressure is mounting up on the billionaire and his high street chain Sports Direct.
A spokesperson for the group has said that results will be likely released this afternoon, but having already delayed the publication of its results once this month, investor confidence is waning.
Less than a fortnight ago the group pushed back its results, warning that tough trading in its House of Fraser line and greater scrutiny of its auditor has taken its toll on the balance sheet.
It is still not clear whether or not the budget retailer will hit its profit forecasts, but shareholders are hoping they will finally get clarity this afternoon.
Staff coming in and out of the firm’s London base off Oxford Street this morning seemed in good spirits, giving little away about the situation inside.
But their firm’s frantic actions this morning cap off a turbulent few months, which has been rocked by the shock departure of two high-ranking figures.
First it was Karen Byers, Ashley’s top retail chief, who left the firm at the start of the month, before days later company secretary Cameron Olson also quit.
The departures come as an untimely blow for Ashley as he fights multiple corporate battles.
In recent weeks the billionaire and Newcastle United owner has been ramping up a war of words with Goals Soccer Centres, of which he is the largest shareholder, over a major accountancy error discovered in March.
A legal row with Debenhams that has now been withdrawn has also kept the retail mogul busy.
Add these escapades to Ashley’s high street spending spree over the last year, and it is not hard to see why investors have been so jittery about the firm, which has seen its share price drop by more than 40 per cent in the last 12 months.
Read more: Mike Ashley blames House of Fraser uncertainty for delaying Sports Direct results
Whether or not its share price will close up or down this afternoon depends on the next few hours. Will Sports Direct hit its profit targets? Will it even post its results?
One thing is for certain. Sports Direct staff in its Central London office will not be getting the quiet end to the week that they had been hoping for.