The billionaire business mogul Mike Ashley will step down from his role as director of Frasers Group, the company that owns Sports Direct.
Frasers have announced that Mr Ashley, who founded the business 40 years ago, will leave the board after the upcoming annual shareholder meeting, which is set to take place on 19 October. However, it is expected that he will continue to act as an adviser to the board and senior management.
Mr Ashley, formerly Newcastle United FC owner, had already handed over the reins of the company to new chief executive Michael Murray back in May 2022. At the time, Mr Ashley was stepping back from his role as chief executive to an executive director role.
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Mr Murray, who is Mr Ashley's son-in-law, was promoted to replace him as chief executive after he led Frasers' 'elevation strategy' as the firm sought to grow its premium division. Mr Ashley said: “Since Michael Murray took over the leadership of Frasers Group earlier this year, the business has gone from strength to strength."
However, even after stepping back in May, Mr Ashley remained closely involved in the firm’s management and is still the group’s controlling shareholder with a stake of nearly 70%. He said he remained “100% committed” to backing the group and will stump up £100 million in financing to show his “continuing strong support”, with the cash lent on the same commercial terms as its existing borrowing facilities.
Mr Ashley said: “It is clear that the group has the right leadership and strategy in place and I feel very confident passing the baton to Michael and his team. Although I am stepping down from the board, I remain 100% committed to supporting Frasers and Michael’s plans and ambitions, and I look forward to helping the team as and when they require me.
“My commitment and support as a Frasers’ shareholder is as strong as ever.”
Mr Murray added: “Mike has built an incredible business over the past 40 years and, on behalf of the board and the group, I want to thank him for all he has done. With our new strategy and leadership team, we are driving this business forward at pace and we are all excited for the future.”
Mr Ashley launched Sports Direct in 1982, later changing its name to Frasers Group after buying the House of Frasers department store in 2018. It has since gone on to snap up a raft of retail high street brands, including Game, Evans Cycles, Jack Wills and Flannels.
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