Mike Ashley’s deal-making faces investor scrutiny

In the tumultuous year since Mike Ashley returned as chief executive of Sports Direct, the UK retail tycoon has stepped up his deal-making, snapping up everything from a lingerie brand to US sellers of outdoor gear.

At the company’s annual meeting today, investors will get their say on a strategy that some argue is better suited to a hedge fund than a publicly traded sporting-goods retailer. Chairman, Keith Hellawell, has pledged to stand down, if a majority of independent shareholders oppose his re-election for a second year, and advisory groups and fund managers are urging them to do so.

“The chair should be challenging, and testing, these deals to ensure they are more likely than not to succeed,” said Paul Lee, head of corporate governance at Aberdeen Asset Management, which owns Sports Direct shares.