Sports Direct set to drop out of FTSE100 while Morrisons could return

The Mike Ashley-controlled firm, which has come under attack for the alleged treatment of its staff, has seen its share price slide more than 40% since the start of last December.

Sports Direct issued a profit warning in January after blaming poor trading conditions on the high street and unseasonable weather over Christmas.

The Guardian newspaper also launched a sustained campaign highlighting some of the alleged working conditions at Sports Direct’s Shirebrook warehouse. 

It led the Institute of Directors to brand Sports Direct a “scar on British business”.

As a result, Ashley said he would carry out a personal review of working conditions in the warehouse. He has also reportedly invited MPs to visit the Shirebrook facility.

Sports Direct chief executive Dave Forsey told Retail Week last year that he was looking to tackle the retailer’s tarnished reputation.

It also emerged last week that Sports Direct will stop borrowing from a loan facility provided by Mike Ashley, after what the retailer called “unjustified criticism” over the situation.

Morrisons dropped out of the FTSE100 in December but has since seen a bounce in its share price as Christmas trading beat expectations. It has also agreed a deal to sell its products through etail giant Amazon, it revealed this week. 

The London Stock Exchange’s quarterly review of the main share price index takes place today with the results due to be published later.