Pressure piles on Mike Ashley as Frasers Group (Sports Direct) share price continues in freefall
Mike Ashley will be feeling the pressure even more, after a very bad Monday to add to his recent collection of other very bad days.
The Newcastle United owner and Frasers Group (formerly Sports Direct International Group) boss most definitely reaping what he has sown, in most people’s eyes.
Mike Ashley seen by many/most as the very worst example of the very rich people looking after themselves, rather than those they employ and the general public at large, during this national/international crisis.
Trying desperately to stop, or at least dilute, the torrent of negative publicity that is impacting on his business empire, early on Friday morning he published an open letter claiming he had made some mistakes/misunderstandings which he apologised for.
The open letter apology was put out by Mike Ashley before the London Stock Market opened on Friday morning to try and prevent a further drop of a Frasers Group share price that was in freefall, an attempt to rebuild confidence and credibility in the toxic Frasers Group/Sports Direct brand
However, clearly investors were not convinced in the slightest, with the Frasers Group share price dropping a massive 17.63%, from 255.20p to 210.20p on Friday (in comparison, the FTSE 100 only dropped by 5.25% on Friday).
Investors selling their shares to a backdrop of so many people vowing to never again give their money to businesses owned by Mike Ashley, when things return to some kind of normality.
Friday’s share price fall was just a continuation of bad news for Ashley’s empire as the Frasers Group share price had fallen from 503.00p on 20 February 2020 to 210.20p on Friday, dropping by almost 60% in five weeks. Mike Ashley having also been forced to issues a profits warning for his retail empire investors earlier this month.
Looking for respite on Monday, Ashley will have found none, the Frasers Group share price falling by 11% today from 210.20p to 187.10p, this despite the FTSE 100 actually going up 1%.
The negative publicity generated by Mike Ashley’s own actions continued on Monday, as he ordered that an email should be sent to most staff at Newcastle United (those who are not players or coaches) telling them they were now ‘furloughed workers’, according to the Chronicle, staff relying on the government to ensure they get 80% of their normal pay.
The first Premier League club to do this (indeed many decent PL club owners have instead reassured staff that they will be paid as normal) in the current crisis and only days after Mike Ashley insisted on taking full season ticket payment by direct debit for the 2020/21 season from many Newcastle fans, despite nobody having any idea when next season will start and at a time when so many people are struggling financially.
On Friday, the laughable Mike Ashley crocodile tears apology letter claiming mistakes and misunderstandings with his behaviour towards his retail empire, now shown totally for what it was.
Will there be even worse news to come for Mike Ashley in the days and weeks ahead? There appears to be every chance as he continue to treat so many people with contempt.
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