Mike Ashley's Sports Direct questioned by MPs following undercover probe

Sports Direct has found itself in hot water again as politicians push the HM Revenue and Customs to investigate wage claims at the sportswear retailer, following an undercover probe.

A debate was held in the House of Commons yesterday, following an undercover expose launched by The Guardian last week, which claimed working practices at the retailer's warehouse near Bolsover saw thousands of employees being effectively paid less than the minimum wage of 6.70 pounds an hour.

Sports Direct is "a bad advert for British business"

Former shadow business minister, Chuka Umunna, labelled the retailer "a bad advert for British business," after filing an urgent question asking why the HMRC has not begun actively investigating Sports Direct following the undercover report, reported the newspaper.

Umunna noted trade union Unite has filed a request for an investigation, but the HMRC replied it was unable to act or start an investigation without direct complaints from Sports Direct employees, who are currently declining offers to step forward for fear of losing their jobs.

"We know enough about the practices at Sports Direct Plc to conclude this company is a bad advert for British business and one with a culture of fear in the workplace which we would not want to see repeated elsewhere," said Umunna said. "Why cannot HMRC go ahead and carry out an investigation in this case?"

In reply, Business Minister Nick Boles, who was called to the parliamentary debate, stressed the HMRC is able to investigate to pro-actively in some cases, whilst praising the Guardian's reporting. "In general, I don’t often welcome an investigation by the Guardian newspaper, but in this case, I think it is absolutely vitally important...if they can uncover things, then I can promise you the government will be sure to review their findings and enforce the law where necessary."

He added that in spite of Sports Direct famed owner Mike Ashley, anything out of line with the law will be addressed. "I don’t care how famous an employer is. I don’t care how well connected they are. I don’t care, frankly, how much money they have made. They need to obey the law. If they don’t obey the law, we will find them and disqualify directors if necessary."

Leading shareholders at Sports Directs have called for a meeting this week to address the company and strengthen its current boardroom. A Sports Direct official response to the Commons debate on Monday, saying: "Sports Direct believes it’s in compliance with minimum wage regulations and takes its responsibilities extremely seriously."

In addition, the retailer noted temporary employees at its Shirebook warehouse are usually hired via temp agencies, which "technically" employ the workers. Sports Direct company value has taken a direct hit since the undercover report - with 600 million pounds cut for its value over the last four trading days and share have plummeted 16 percent.