Sports Direct has begun the process of buying back nearly £90m worth of its own shares, and has plans to purchase more in the future.

The £90m equates to 5% of Sports Direct’s issued share capital, or a maximum of 29,923,243 ordinary shares.

It will buy back the shares in the period leading up to its AGM on September 7, at which it intends to seek shareholder authority for further buyback.

Sports Direct’s share price has plummeted recently, fuelled by management’s admission that a lack of  hedging exposes it to currnecy headwinds.

Retail analyst Nick Bubb said this morning that the initiative would “use up spare cash and marginally increase Mike Ashley’s already dominant share stake in the company… and may squeeze the bears”.

Boss Ashley has been embroiled in a select committee hearing over working conditions in his warehouses recently, with MPs now choosing to extend the scope of the inquiry to shop floor staff.

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