Mike Ashley and Sports Direct will be formally relegated from the London Stock Exchange FTSE 100 on Wednesday.
Every three months a review takes place which looks at which are the 100 most valuable listed firms and at close of business today (Tuesday 1 March), The Guardian report that Sports Direct were now ranked at number 142 – well outside the top hundred.
The London Stock Exchange are expected to confirm that this is the case tomorrow when revealing the make-up of the revised FTSE 100.
In the last sixth months, the share price of Sports Direct has been halved, amid a series of disastrous events, with much of the negative coverage sparked by the ruthless way the company is ran and especially the way most of the staff are treated.
On hearing the news, Frances O’Grady (General secretary of the TUC):
“This should be a cautionary tale for companies who treat their workers badly. The reputational and financial damage Sports Direct has suffered is of its own making.
“Subjecting staff to workhouse conditions is not the way to build a successful business. Shareholders must demand root and branch changes or Sports Direct’s name will continue to be dragged through the mud.”
Ashley Hamilton Claxton (Corporate governance manager at Sports Direct shareholder Royal London Asset Management):
“It is hardly surprising that Sports Direct has fallen out of the FTSE 100. Over the long term, shareholder value is intrinsically linked to corporate governance and companies ignore this at their peril. The long list of corporate governance failings at Sports Direct is a contributing factor in its fall from the FTSE 100 in our view.”
If Mike Ashley hadn’t bought up all the shares in Newcastle United and taken it private, it isn’t difficult to imagine what impact his running of the club would have had on the share price…