Sports Direct appoints Mike Ashley CEO

Ashley, who was previously executive deputy chairman and took no salary, will replace Dave Forsey, who resigned on Thursday amid scandal at the retailer for its workplace practices at its Derbyshire warehouse and poor corporate governance.

The retailer has been criticised by investors and unions for its labour conditions and a committee on MP’s compared Sports Direct to a Victorian workhouse.

Ashley said on the departure of Forsey: "I feel like I have lost my right arm, but I do hope to have the opportunity to work with Dave again in the future."

Forsey, who has agreed to aid a smooth handover, said: "I have given my entire working life to the company and in return the company has given me amazing opportunities and experiences.”

Chairman Keith Hellawell, said Forsey had made a “significant contribution over the last 32 years and during a period of significant growth and change at the company.”

Sports Direct also promoted Karen Byers to global head of operations and Sean Nevitt to global head of commercial.

Analyst Jasper Lawler at CMC Markets, said Sports Direct’s shares leapt over 7% on the appointment of Ashley as Forsey has had to take the fall for the workplace practices scandal.

He added: “Mike Ashley has been criticised in some quarters for having too much influence, but really the opposite seems true. Listening to his media interviews, it seems more like Ashley took his eye of the ball.

"By taking over as CEO, Ashley is making a public commitment to refocusing and getting the company he founded back on track.”

Shares in Sports Direct were up 6.58% to 305.78p at 1116 BST.