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Sports Direct's Mike Ashley warned by MPs after dodging Parliament hearing

MPs want to question him over the company’s behaviour

Simon Neville
Wednesday 09 March 2016 13:59 GMT
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The Business Committee would like to hear from Mike Ashley over how he runs Sports Direct
The Business Committee would like to hear from Mike Ashley over how he runs Sports Direct (AFP)

Mike Ashley, the billionaire founder of Sports Direct, has been threatened with being found in contempt of Parliament after failing to agree a date to be questioned by MPs on the influential Business, Innovation and Skills Select Committee.

Iain Wright MP, chairman of the committee, revealed a number of attempts to secure a date for Ashley’s appearance have failed and he has ordered the Sports Direct founder to agree one by June 1 or face the consequences.

MPs want to question him over the company’s behaviour, including the use of controversial zero-hours contracts for the vast majority of its workers and reports of poor working conditions in its warehouse, which could have breached minimum wage laws.

Wright wrote: “A number of alternative dates have been offered to you by the committee clerk, but as yet you have not accepted any of them, nor agreed in principle to attend.

“As you will be aware, select committees do not normally need to have recourse to our formal powers to summon witnesses in order to secure attendance; refusal to attend without good reason may be considered a contempt of the House.”

“Should you fail in your reply to agree to attend on one of the dates offered to you, or a mutually convenient alternative before 1 June, the committee reserves the right to take the matter further.”

He added that the committee expects a reply to its letter by March 21. It is not the first time MPs have attempted to question Ashley, who rarely speaks in public. The Scottish Affairs Committee called him in the last parliament over the collapse of USC, which Sports Direct put into administration and subsequently bought back debt free.

He claimed he was too busy and sent under-fire chairman Keith Hellawell instead. MPs accused the former police chief of running a “backstreet operation”, where Ashley and other executives kept the board in the dark over its dealings. At that hearing, Hellawell said Ashley would be willing to appear at a select committee, claiming he has “never refused” to attend.

Since the Business Committee said it would like to hear from Ashley over how he runs Sports Direct, the flamboyant billionaire, who also owns Newcastle United, countered their offer by inviting MPs for a tour of his Shirebrook, Derbyshire warehouse.

However, Wright said today the invitation was not in line with the committee’s “commitment to transparency”.

He wrote: “It is normal practice for the BIS Committee to meet in public at Westminster and we agreed to adhere to this practice on this occasion.”

The company has struggled in recent months, losing out to competitor JD Sports, issuing a shock profit warning over the Christmas period and getting dumped out of the FTSE 100.

Sports Direct was unavailable for comment.

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