Investors fear Mike Ashley is plotting Findel closure

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Investors in the online sports and gifts retailer Findel are worried that Sports Direct might prompt the company towards administration (PA)

Investors in the online sports and gifts retailer Findel are worried that Sports Direct might prompt the company towards administration if it appoints a representative to the board, The Independent understands.

Mike Ashley’s Sports Direct bought a stake in Findel last month, and has called for Benjamin Gardener to be made a non-executive director. Mr Gardener was previously at Sports Direct’s fashion chain USC, which went into administration in January, giving staff 15 minutes’ notice. Sports Direct bought the company from itself, leaving USC debt-free.

Schroders and Toscafund sold Sports Direct a 19 per cent stake from their Findel shareholdings – while remaining significant shareholders – with the hope that either Findel would sell Mr Ashley its online sports retail division Kitbag, or the businessman would work his magic on improving Findel’s prospects. However, since it was revealed that Sports Direct wants to install Mr Gardener on to the board, investors are thought to have become concerned that the plan could involve pushing the company into administration through boardroom influence, leaving Mr Ashley the chance to buy Findel from administrators debt-free.

The only cost to Sports Direct in such a case would be the share purchase recently made, as the shares would become worthless. But other shareholders would also see their stakes worth nothing.

Mr Ashley has not commented on these concerns.

The shareholders Toscafund, Schroders and River & Mercantile, with a combined 43.9 per cent stake in Findel, have agreed to vote against the appointment of Mr Gardener.

An investment source said: “Investors are worried about Ashley’s intentions. He has form when it comes to these sorts of deals.”

Schroders’ fund manager Andy Brough is thought to be particularly worried because he has been a long-standing friend of Mr Ashley and knows his aggressive tactics.

Mr Brough was a major investor in Sports Direct through Schroders at the time of its listing in 2007, although the pair are thought to have fallen out over the Findel deal.

Findel investors are said to be recalling Mr Ashley’s alleged involvement in JJB Sports, when he lent the chairman £1.5m. Former chief executive Mr Ronnie led JJB to the verge of collapse, and was later jailed for fraud, but was forced to deny he was Mr Ashley’s puppet.

JJB’s eventual failure in 2012 benefited Sports Direct as it won former customers and bought parts of JJB from administrators at a knockdown price.

More recently, Sports Direct was accused of intimidating the founder of Direct Golf, John Andrew. He was reportedly removed as director without being informed, had the office locks changed while he was out meeting lawyers, and had winding-up orders filed against his firm by Mr Ashley, in an attempt to take control of the business.

These claims were put to Sports Direct, which declined to comment.

Findel also declined to comment, while Mr Brough did not respond to requests for comment.