Sports Direct’s biggest investors have said that, while they welcomed the retailer’s new open approach following the publication of its working practice report, the business needs to make more headway over the next three months.
The Investor Forum has 40 members and represents 27% of Sports Direct’s independent shareholders, including Legal & General, Aviva, Standard Life and Fidelity.
The group said it has held “constructive” meetings between major shareholders and the Sports Direct board, but action was now needed to rebuild trust.
“We are encouraged by Sports Direct’s recent open approach. These, however, are only the first steps in a long journey towards rebuilding trust and shareholder value,” said Andy Griffiths, executive director of the Investor Forum.
“Our focus in the coming weeks will be on identifying key milestones to achieve this goal and, in particular, reaching agreement regarding the specific nature, remit and timing of the 360 and governance reviews. Facilitating a constructive dialogue on this will take on heightened importance over the next three months before the general meeting required to re-elect the chairman,” he added.