Mike Ashley, Sports Direct founder, admits warehouse problem

The owner of sportings good chain Sports Direct, Mike Ashley, has finally admitted that working conditions and practices at the retailer's warehouse in Derbyshire needs improvement.

Ashley's acknowledgement of the issues affecting Sports Direct main warehouse comes ahead of the billionaire's meeting with MPs on Tuesday morning, where he has been asked to provide evidence regarding the working practices at Sports Direct. In a letter to 27,000 members of staff, made public on Monday, Ashley admitted that improvements needed to be made to Sports Direct security procedures and search processes at its Derbyshire warehouse.

"This has been a difficult year for the company," he admits in the letter, as his goings on to thank his employees for their "hard work" during a "challenging time." Ashley added that Sports Direct Chief Executive Dave Forsey would not be receiving his 4 million pounds bonus due to the "difficult year." The billionaire owner of Sports Direct had previously refused to appear before the Business, Innovation and Skills select committee, but appeared to have a change of heart on Sunday and decided to appear before the MPs to "defend the good name of Sports Direct" and all its employees.

In his letter, Ashley stressed that he was attending the select committee because the retailer has "nothing to hide" and encouraged MPs to visit the warehouse in question before the hearing. The hearing comes after an undercover probe discovered employees where subjected to searches and surveillance at the warehouse which in turn saw them underpaid. Ashley insists that his all his employees are paid above the national hourly wage minimum.

"I'm pleased that Mr Ashley has finally agreed to give evidence at our hearing on Tuesday, in accordance with the Parliamentary summons issued by the BIS Committee in March," said BIS Committee chair Iain Wright MP in a statement. "Mr Ashley announced in December he would personally oversee a review of working practices at the Shirebrook warehouse in response to serious allegations made and we look forward to Mr Ashley answering our questions, including in response to these allegations and the progress of his review."

"As a Committee, we want to get a sense of the genuine and balanced picture at Sports Direct and establish whether there are issues for the wider economy which need further examination, such as the status and rights of agency workers."

Photo: Sportsdirect.com, Facebook and Sports Direct store, Mtaylor848, Wikipedia