Chairman of ailing retailer Blacks agrees to step down

Mr Bernstein, who is also chairman of the Football Association, said he had agreed to step down with immediate effect after 10 years in the role.

The decision came after Sports Direct, which owns a 21 per cent stake in Blacks, voted against his re-appointment at the firm’s annual general meeting last week. Its opposition came after a 97 per cent fall in the value of the company’s shares since Sports Direct first invested in the chain in 2007.

At the weekend, a Sunday newspaper quoted a Sports Direct source as saying the company was “astonished” that Mr Bernstein was still in the job.

The retailer – controlled by Mr Ashley, the Newcastle United owner – was reportedly considering a plan to call an extraordinary general meeting to oust Mr Bernstein.

Blacks said that Mr Bernstein decided to step down because the company needed “a unified shareholder base” at a time of difficult trading.

It added: “During his time with the company, David has made a considerable contribution to the business and the board would like to take this opportunity to express their gratitude and to wish him well for the future.”

Blacks recently negotiated a new £40m banking facility from Bank of Scotland, which effectively gives it an extra £2m until December 15.

The move followed a “significant increase” in its debt after a worse than expected 9.7 per cent drop in like-for-like sales in the 19 weeks to July 9.

Mr Bernstein’s departure comes less than a week after former Figleaves boss Julia Reynolds started at Blacks as its new chief executive.

Some analysts have speculated that Blacks may look to raise cash from shareholders with a rights issue, although it would need the support of Sports Direct to be able to do this.