JD Sports Fashion PLC (LON:JD.) has said it will launch an investigation into working conditions at its distribution centre in Rochdale after a report by Channel 4 News found workers complaining it was "worse than a prison".
In a statement this morning, the FTSE 250-listed retailer said: “We are deeply disappointed and concerned by the footage broadcast by Channel 4.”
It added: “Whilst we do not believe it to be an accurate reflection of our culture, the vast majority of our people or our standards of practice and procedures, we will be launching an investigation into the implementation of our policies at our Kingsway facility.”
JD Sports also said it would “readily open our doors to an appropriate independent body wishing to scrutinise our operations at Kingsway.”
Channel 4 News filmed undercover inside the Kingsway Business Park facility, which supplies all of JD Sports' stores in the UK and most of those abroad, as well as fulfilling online orders.
JD employs 1,232 workers at the site which is staffed 24 hours a day, seven days a week, by a combination of employees and agency staff.
The programme detailed "harsh practices", including a policy allowing workers to be sacked after three minor misdemeanours.
JD said: “We would like to reiterate that we categorically do not operate a 'strike' policy or system and our workers cannot be fired 'on the spot'; we have a fully outlined disciplinary procedure and appeal process based on the ACAS code of practice.”
In early trading, JD shares bounced higher afetr opening falls, adding 1.5p at 513.1p.
Nick Bubb, an independent retail analyst, said: "Well, it is not good to hear that JD Sports has been dragged into the debate about poor working conditions in distribution warehouses, but at least it has been upfront about the problems and has been proactive on the PR front."
The latest warehouse scandal comes after JD’s high street rival Sports Direct - which is 56% owned by billionaire Mike Ashley - was sharply criticised by MPs in July for what they called "appalling" working conditions at its main warehouse at Shirebrook in Derbyshire.
This led the company to launch an independent review which found "serious shortcomings" in practices at Shirebrook, which Sports Direct is currently taking steps to tackle.
-- Adds share price, analyst comment --