Frasers Group has said founder Mike Ashley will not seek re-election as a director at its next annual general meeting and will be stepping away from the business.
Ashley is due to step away from the business at its AGM on October 19, after more than 40 years working for the company he founded and built into a retail empire.
Frasers Group said Ashley would “continue to be available to the board and senior management in an advisory capacity when called upon”.
The retailer also Ashley would be giving Frasers Group £100m of additional funding alongside, and on the same commercial terms, as the retailer’s existing unsecured borrowing facilities that were announced on December 1, 2021.
Ashley, who stood down as chief executive of Frasers earlier this year, has passed the baton on to his son-in-law Michael Murray.
“Since Michael Murray took over the leadership of Frasers Group earlier this year, the business has gone from strength to strength,” said Ashley. “It is clear that the group has the right leadership and strategy in place and I feel very confident passing the baton to Michael and his team.
“Although I am stepping down from the board, I remain 100% committed to supporting Frasers and Michael’s plans and ambitions, and I look forward to helping the team as and when they require me. My commitment and support as a Frasers’ shareholder are as strong as ever.”
Murray said: “Mike has built an incredible business over the past 40 years and, on behalf of the board and the group, I want to thank him for all he has done. With our new strategy and leadership team, we are driving this business forward at pace and we are all excited for the future. We are grateful to have Mike’s support and expertise available to us as we continue the next stage of Frasers Group’s journey.”
He founded Frasers Group, then called Mike Ashley Sports, with a single store in Maidenhead in 1982. As Sports Direct, Ashley grew the business to become the biggest sportswear retailer in the UK and it floated on the London Stock Exchange in 2007.
In more recent years, Ashley has become a figurehead for the UK high street, became embroiled in an ugly battle to buy out Debenhams and was the previous owner of Newcastle United Football Club.
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