The head of JD Sports has resigned with immediate effect just months after the retailer was fined more than £4m for breaching competition regulator rules with clandestine meetings with the aim of acquiring control.
The company said Peter Cowgill, the chairman and chief executive of JD, who has led the group since 2004, would be temporarily replaced as chief executive by Kath Smith, its senior independent director who spent 25 years as CEO of Adidas and Brands. reebok.
Cowgill, 69, who has sold more than £50m worth of shares in the company in the last two years, is understood to be leaving after he tried to block attempts by the board to bring in new blood and split roles. of president and CEO. , which Cowgill has jointly held since 2014.
The company was also hit by a shareholder pay riot last year after it emerged Cowgill received nearly £6m in bonuses despite the company accepting more than £100m in support of the government. The company did not say whether Cowgill would receive a payment.
Cowgill’s sudden departure will be a major blow to the company, where he has overseen a reversal of fortune since returning as chief executive three years after stepping down as chief financial officer in 2001.
Under his watch, the group expanded internationally, built a successful online business and joined the FTSE 100 after acquiring a portfolio of brands including Sprinter, Go Outdoors and Fishing Republic.
JD Sports and Footasylum were fined a combined £4.7m in February for sharing sensitive business information. An investigation by the UK competition watchdog accused them of wiping phone records and found that their chairmen had held multiple clandestine meetings, including one recorded on video in a car park near Bury in Greater Manchester.
JD bought trainers retailer Footasylum for £90m in 2019 in a deal that was subsequently the subject of a thorough investigation by the Competition and Markets Authority.
Helen Ashton, who will take over as Interim President of JD, said: “The business has developed strongly under Peter’s leadership into a world leading multi-channel retailer with a proven strategy and clear momentum.
“However, as our business has grown larger and more complex, what is clear is that our infrastructure, governance and internal controls have not developed at the same pace.
“As we capitalize on the great opportunities that lie ahead, the board is committed to ensuring we have the highest standards of corporate governance and controls appropriate for a FTSE 100 company to support future growth.”
The company said it would continue the search process for an executive director and would now start looking for a new non-executive chairman.
JD’s majority shareholder Pentland said new leadership and a change in governance were “necessary steps to ensure the long-term sustainable growth of the business and that JD accepts the scrutiny and responsibility that comes with being a FTSE company.” 100″.
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Pentland said in a statement: “The JD team, under the leadership of Peter Cowgill, has had a period of unprecedented success over a number of years which has led to significant growth in the business and its operations.
“With such growth comes the responsibility of ensuring that the business continues to evolve in its internal organization. As long-term supportive shareholders, we recognize that now is the right time for the company to deliver on its future ambitions under a new governance structure and new leadership.”
In February, JD said it was delaying the release of its annual results in part because it wanted to complete a review of its governance policies and procedures. The announcement is expected next month.
Source: www.theguardian.com