Mike Ashley – the retail tycoon thought to be worth around £2.4 billion – is stepping down from the board of Frasers Group.
Mr Ashely was the man who founded the Sports Direct business 40 years ago, changing the group name to Frasers Group after buying the House of Frasers department store chain four years ago.
Over the years he acquired a string of other retail brands including Game, Evans Cycles, Jack Wills and Flannels. He also owned Newcastle United until its sale last year and was a big investor in the department store chain Debenhams, before its collapse during the pandemic.
According to Frasers Group, which is based near Mansfield in north Derbyshire, Mr Ashley will not be standing for re-election as a director at the October 19 AGM, but will continue to advise the board and senior management as and when needed.
Mr Ashley remains still the group’s controlling shareholder with a stake of almost 70 per cent and will provide the group – which has continued to invest in new stores – with £100 million of additional financial support and on the same terms as its existing unsecured borrowing facilities.
Back in May the ex-CEO handed over the reins of the business to his son-in-law Michael Murray, who has lead Frasers’ “elevation strategy” which has seen the firm 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.
“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 per cent 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."
Chief executive Michael Murray said: "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.
“We are grateful to have Mike's support and expertise available to us as we continue the next stage of Frasers Group's journey."
The group recently announced that sales had recovered strongly post-Covid with sales through its premium outlets up almost 44 per cent year-on-year. Total pre-tax profits were £366 million on sales of £4.75 billion.
