Mike Ashley loses "right arm" as he is named CEO of Sports Direct

London - Billionaire Mike Ashley has been named the Chief Executive Officer of his own sportswear company Sports Direct, following the resignation of former CEO Dave Forsey.

The move sees Ashley taking up the reins at Sports Direct with immediate effect as the UK's largest retailer struggles with declining profits and accusastions of improper working practices in the company's warehouses hit company shares as well as its reputation.

Forsey officially resigned from his role as CEO and director of the company on Thursday evening, after which the Board appointed Ashley Chief Executive, said Sports Direct in a statement on Friday morning. Ashley, who is not only the company's founder but also its majority shareholder, has previously served as Sports Direct Deputy Executive Chairman.

Mike Ashley named CEO of Sports Direct as Dave Forsey steps down

However, Ashley will continued to be supported by the company's existing executive management team and Forsey has agreed to help facilitate a smooth handover of his responsibilities, added the company. "I have given my entire working life to the Company and in return the Company has given me amazing opportunities and experiences" said Forsey on his exit in a statement, who exits the company after a 32 year tenure. "I wish everyone at Sports Direct well in the future."

In addition to the change of roles, Sports Direct has promoted its Head of Retail, Karen Byers, to its Global Head of Operations and its Head of Buying, Sean Nevitt, to the role of Global Head of Commercial. Following news of the changes in Sports Direct management team, company shares increased as much as 8 percent in London Friday morning.

Forsey's exit from Sports Direct comes as investors continue to push for change at a management level to help steer the company back into the clear. Sports Direct previously saw half of its company value wiped out on the London stock market as competitors JD Sports saw its stock grow 39 percent.

Last week saw shareholders vote against the reappoint of Chairman Keith Hellawell during Sports Direct annual general meeting and this week Ashley finally succumbed to pressure from investors and appointed an independent law firm to review its boardroom and employment practices.

Ashley is not the first founder to take back control over a company he started, but he will likely find it challenging to turn things around for Sports Direct, as he previously stated he was unable to oversee all areas of its business during a parliamentary hearing in June. In addition, he will be working without the support of Foresey. "I feel like I have lost my right arm, but I do hope to have the opportunity to work with Dave again in the future," said Ashley on Forsey's departure.

Photo 1: Sports Direct, Betty Longbottom, via Wikimedia Commons

Photo 2: Mike Ashley, AFP