Sports Direct reveals Belgium authorities demanding £605m from company in unpaid taxes

FTSE 250 business branded ‘total shambles’ after delaying results for second time in two weeks

Pedestrians pass a Sports Direct store in central London (EPA)

Belgian authorities are demanding €674m (£605m) in unpaid taxes from Sports Direct, the company revealed as it published its delayed results.

The FTSE 250 business, which also owns Flannels, House of Fraser, Evans Cycles and sofa.com among others, also said its chief finance officer, Jon Kempster, will step down on 11 September and will be replaced by his deputy, Chris Wootton.

It said: “Jon came in during a transitionary period and his knowledge and experience has helped to guide the group through this stage in its development as well as passing on vital knowledge to those around him.

“Jon was proactive in forging improved relationships with the market and we believe we are in a better place in this regard than when he first started.”

Mike Ashley, Sports Direct’s chief executive, told investors there will be more House of Fraser closures in the short term, adding: “Some of the stores lose money on zero rent.”

Earlier on Friday the retailer was branded a “total shambles” after it delayed publishing its results for the second time in as many weeks.

Investors were keen to hear more about the takeover spree embarked on this year – with House of Fraser of particular interest – after bosses revealed in December last year that it had made a loss of £31.5m since it was bought for £90m last August.

But by 8am on Friday, when the stock market opened, the results were still missing, all planned calls with the media and analysts in the City were cancelled, and a presentation to investors at the retailer’s London head office was scrapped.

Shares dropped in early trading when the results did not appear but recovered and were flat by mid-morning on Friday.