Mike Ashley confirms plans to step down as top boss of Sports Direct owner

The parent company of Sports Direct, House of Fraser and Flannels is proposing that Michael Murray – the retail tycoon’s prospective son-in-law – will become chief executive in May next year.

It added that, should Mr Murray take over, Mr Ashley will remain on the board as an executive director.

Mr Murray, who is engaged to the founder’s daughter, Anna, is currently “head of elevation” at Frasers and has been tasked with modernising the business and creating a more upmarket image.

The firm told investors that a pay and bonus deal is currently being drawn up on the basis that Mr Murray will become chief executive.

“The group’s elevation strategy is transforming the business and receiving positive feedback from consumers and our brand partners, especially on projects such as the new Oxford Street Sports Direct which opened in June 2021,” the firm added.

“The board considers it appropriate that Michael leads us forward on this increasingly successful elevation journey.”

Mr Ashley founded Sports Direct in 1982 and has expanded his retail empire to be worth around £3bn and cover almost 1,000 stores.

Frasers also revealed on Thursday that its profits plunged for the past year after sales were hit by enforced high street closures during the pandemic.

The retail giant said pre-tax profits dived 94 per cent to £8.5m for the year to April 25, down from £143.5m in the previous year.

Mr Ashley said: “The group is continuing to invest in its physical and digital elevation strategy and our omni-channel offering is growing in strength.

“Our stores in the UK have reopened above expectations and our online channel continues to significantly outperform pre-Covid-19 periods.

“Nonetheless, management remains of the view that there is a high risk of future Covid-19 pandemic restrictions, likely to be over this winter and maybe beyond.”