Mike Ashley will reportedly announce himself as chairman of Sports Direct this week, doing little to ease the controversy surrounding his retail business.

Sports Direct is also expected to report a 40 per cent dive in first-half pre-tax profits at its extraordinary meeting on Wednesday. It will also seek to approve a share buy-back scheme; Ashley holds a 67 per cent stake in the company, but this could increase to 72 per cent.

Last week Merrill Lynch, which helped to float Sports Direct, advised shareholders to sell their shares in the company.

Shares in the retailer have taken a nosedive since the retailer was floated in March at 300p a share. The share price stands at 91.5p today.

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