Sports Direct International (LON:SPD) has backed down on a plan to get its own lawyers to review its controversial working practices after investor criticism.
The retailer, chaired by Mike Ashley, said an independent party other than RPC would carry out the review following concerns expressed at its annual meeting about the law firm’s impartiality.
"The board has made this decision after listening to shareholder feedback at the recent AGM/Open Day and during subsequent consultation with a number of the company's long-standing shareholders," Sports Direct said.
The move comes after 53% of Sports Direct’s independent shareholders rebelled at the retailer's AGM against the re-election of chairman Keith Hellawell.
Investors have voiced concern about the company’s corporate governance and employment practices at its warehouse in Shirebrook, Derbyshire, after it emerged that it was paying some warehouse staff less than the national minimum wage.
Sports Direct has apologised for the breach and blamed specific one-off circumstances.
But in a BBC interview, Ashley defended the apparent irony between the company’s payment of the minimum wage and his use of private jets and helicopters to travel to work.
He said: “I do fly to work by helicopter, it’s a reality. If Sports Direct wants to do a load more international business, I say, OK guys, I don’t get paid a salary, but what I do like to do is go by plane.”
Ashley added that Sports Direct was not responsible for setting the minimum wage and if the government wanted companies to pay more than that, they should increase it.
“That’s how I look at it,” he said.
In response to the criticism and following an initial review by RPC, Sports Direct has offered casual retail staff the choice of guaranteed hours rather than zero-hours contracts and said it will pay warehouse staff more than the minimum wage.
Unite assistant general secretary Steve Turner said: "At last Mike Ashley and his board have grasped they need to take some very serious steps to restore shareholder, consumer and worker confidence.”