JD Sports activities plans to enhance company governance

The JD Sports activities emblem is seen on the outside of a retailer on November 17, 2021 in London, Britain. Reuters/Might James

June 22 (Reuters) – British retailer JD Sports activities Trend (JDL) on Wednesday deliberate to overtake its company governance construction and inside controls after reviewing the exit of longtime boss Peter Cowgill final month.

The corporate, which introduced plans together with its outcomes for the yr ended 29 January, posted annual revenue that greater than doubled from the earlier yr to £654.7 million ($800 million), fueled by robust demand for its sports activities leisure put on. Nevertheless it was. Its shares rose 3.4%

JD Sports activities fired govt chairman Cowgill final month, saying its inside governance and controls had not stored tempo with the agency’s development. The group has been run by Cowgill since CEO Barry Bown stepped down in 2014.

Britain’s largest sportswear retailer has come underneath regulatory scrutiny from the competitors regulator for a wide range of points, together with its relationship with Futsilm and the pricing of soccer kits. learn extra

JD Sports activities stated it has accomplished a evaluate and plans to revamp its governance, danger and management atmosphere to incorporate a separation of roles on the high.

“The method of recruiting CEOs is in numerous levels of consideration with many excessive potential candidates,” stated interim president Helen Ashton. “The method of recruiting a brand new non-executive chairman can also be progressing at a speedy tempo.” learn extra

The corporate stated the evaluate additionally emphasised the necessity for a extra skilled board.

The UK’s Competitors and Markets Authority (CMA) provisionally discovered earlier this yr that JD Sports activities broke competitors regulation with rival Rangers FC on merchandise pricing.

It additionally fined the group, together with Futaslim, a mixed £4.7 million, which the regulator stated was in violation of an order that had barred the 2 merged corporations from additional integrating.

($1 = 0.8181 pound)

Reporting by Aamna Karimi and Yadarisa Shabong in Bengaluru; Modifying by Shailesh Kuber and Anil D’Silva, Elaine Hardcastle

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