Dave Forsey, Chief Executive of Sports Direct, has been accused of failing to alert the authorities of plans to lay off their warehouse staff in Scotland. USC went into administration earlier on this year before being bought out by Republic.com, another Sports Direct business. 200 USC staff lost their jobs at the Ayrshire warehouse and were given 15 minutes’ notice. Forsey will appear at Chesterfield Magistrates’ Court next Wednesday according to the Guardian. “We can confirm that criminal proceedings have been commenced against David Michael Forsey,” a statement from the Insolvency Service said. “He is charged with an offence contrary to section 194 of the Trade Union and Labour Relations (Consolidation) Act 1992.”
Forsey has also stepped from his position as company secretary of Mike Ashley’s holding company, Mash Holdings, which he has held for the past 10 years.
This is the latest and most series of controversies the retailer has been involved in. Others range from zero hours, warehouse conditions and the absence of a permanent Finance Director. As a result, the retailer’s share price took a hit last week. At the moment, consumers still have an appetite for their value offer, but, how will the retailers ongoing disdain for the outside world and stream of worrying news affect the future?