It has now been revealed that Mike Ashley’s right hand man Dave Forsey resigned as Company Secretary from Mash Holdings at the start of August.
Mash Holdings (Mike Ashley ShareHoldings) is Mike Ashley’s holding company containing all of his stakes in his various businesses, including his shares in Sports Direct and the wholly owned Newcastle United.
The total value of Ashley’s holding company is close to £3billion.
This follows the news in recent days that Dave Forsey as Chief Executive of Sports Direct, will appear in court this week on criminal charges by the Insolvency Service, which relate to the collapse of the USC fashion chain, which is/was a wholly-owned subsidiary of Sports Direct, the case being an alleged failure to give staff proper notification of redundancy.
It turns out Dave Forsey was due originally to appear in court on August 15 (two weeks after his resignation from Mash Holdings) only for the case to then get adjourned until this October date.
Sports Direct saw their share price fall by close to 7% after news emerged of the criminal charges against Dave Forsey.
SD has seen an ongoing revolt amongst shareholders who aren’t happy about the allegedly secretive way Mike Ashley and a small group of trusted people run the business, claiming to pay only lip service to the board.
This has now been added to with some shareholders criticising Sports Direct for not informing them for the past two months that the SD Chief Executive was facing criminal charges.
Whilst you can’t say Sports Direct is now a struggling business, Mike Ashley and his company is attracting more and more bad publicity due to the way it is run. Which in turn is now damaging the share price as the company becomes less attractive to investors.
In addition, on Friday the ratings agency Morgan Stanley downgraded the Sports Direct stock to ‘equalweight’ from ‘’overweight’, basically saying that the shares look less attractive now with the company not making the progress that was recently anticipated.
Maybe we will see a few more Sports Direct advertising hoardings at St James Park to help Mike Ashley in his fightback…