I've had enough! Sports Direct chief exec whose lavish life was laid bare on TV quits — leaving Ashley in charge 

Spotlight: Forsey's wife Stace featured on a reality TV show

Spotlight: Forsey's wife Stace featured on a reality TV show

Billionaire Mike Ashley took over the running of Sports Direct yesterday when chief executive Dave Forsey quit after being made the fall guy for its troubles.

Shares in the retail giant rose 5.4 per cent, or 15.90p, to 302.80p as Ashley took the helm with immediate effect.

His relationship with Forsey, 50, who had been at the firm for 32 years, is understood to have fallen apart recently as it was criticised for Victorian working practices at its warehouse in Derbyshire.

Forsey was publicly blamed for the problems, and gave up a £3.7millio bonus. 

But the relationship between the two men also became strained when Forsey and his wife Stacey – who have two children – appeared on an episode of reality TV show The Real Housewives of Cheshire that screened just days before the firm's annual meeting.

It depicted the couple's luxury lifestyle in their £6million mansion in Prestbury, in the so-called Golden Triangle of Cheshire which is home to dozens of Premier League footballers including Wayne Rooney and Peter Crouch.

Set in two acres of land, it has six bedrooms, seven bathrooms and an indoor pool. 

It has all the trappings of luxury, such as a steam room, Jacuzzi, his-and-hers dressing rooms, wine cellar and lift.

During one episode of the show, Mrs Forsey, 40, is shown driving a purple Aston Martin, while boasting that her husband is a 'very successful businessman'.

Meanwhile, her husband was bearing the brunt of much of the criticism. 

He was the only executive shamed in a report published by law firm Reynolds Porter Chamberlain (RPC).  

Palatial: The couple's £6million mansion in Prestbury, in the so-called Golden Triangle of Cheshire

Ashley was said to be annoyed that the show aired while Sports Direct was being criticised for failing to pay workers the minimum wage.

Close: Dave Forsey with Ashley in 2006

Close: Dave Forsey with Ashley in 2006

And criminal charges have been brought against Forsey for failing to notify authorities that workers at fashion chain USC, which is linked to Sports Direct, were to be made redundant.

It appears Forsey, who has received the same salary of £150,000 since 2002 and is one of the lowest-paid bosses of a publicly quoted company, was tired of taking the flak. 

He owns just 50,000 shares in the business, worth £149,000, and has a long-term incentive plan containing 1million shares – though this is not expected to pay out.

It is claimed that Ashley did not want Forsey to leave and the two get on well. Ashley said last night: 'I feel like I have lost my right arm, but I do hope to have the opportunity to work with Dave again in the future.'

The firm is still searching for a finance director, while chairman Keith Hellawell has been accused of being a lame duck. 

Oliver Parry, head of corporate governance for the Institute of Directors, described Ashley's elevation to the chief executive role as 'bizarre' and 'dysfunctional corporate governance'.

The firm has taken some steps to react to shareholder concerns.

Earlier this week Ashley caved in to calls for an independent law firm other than RPC to conduct a review of the controversial business practices at Sports Direct.

A probe into the retail giant will now be conducted by a company which has no previous ties to the business.

 

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