Sports Direct International Plc will replace a long-time legal advisory firm heading up a review of its labor and corporate governance practices with an independent third party.
The company, which is the United Kingdom’s largest sporting goods retailer and expanding rapidly across Europe, said it will replace the law firm RPC in response to feedback from independent shareholders. RPC was to lead a “360-degree review” of Sports Direct’s labor and corporate governance practices prompted in part by negative press over the company’s use of “zero-hour” contracts.
The board made the decision after listening to shareholder feedback at the company’s recent annual shareholder meeting and investor day and in subsequent consultation with a number of the company’s longstanding shareholders via the Investor Forum.
“The Board will continue constructive dialogue with the Company’s independent shareholders in order to reach agreement regarding the specific nature and timing of the review,” the company said. “RPC will continue to be a valued legal advisor to Sports Direct, and the Board would like to thank RPC for its work on the existing Working Practices Report, which was compiled to the highest standards.”
Sports Direct also announced that the process for selecting a workers’ representative to its board, which was announced September 6, will be via elections in which all staff directly engaged or employed by Sports Direct may vote.
