Sports Direct CEO steps down from holding company following criminal charges

Chief Executive Officer at Sports Direct, Dave Forsey, has stepped down from his role as company secretary of Mash Holdings, Mike Ashley's holding company, days before he is set to appear in court to face criminal charges related to the collapse of fashion retailer UCS.

Forsey stands accused of failing to notify authorities of plans to fire warehouse employees in Scotland following the collapse of Sports Direct fashion retailer USC. Approximately 200 employees were given 15 minutes of notice by USC's administrator this January prior to being laid off. The former CEO was previously sent his summons in July and his case is scheduled to be heard at Chesterfield magistrates court this Wednesday, according to the Guardian.

Dave Forsey exits company secretary position ahead of criminal proceedings

"We can confirm that criminal proceedings have been commenced against David Michael Forsey," said the UK Insolvency Service in a statement. "He is charged with an offence contrary to section 194 of the Trade Union and Labour Relations (Consolidation) Act 1992. The investigation into the conduct of the directors is ongoing. The inquiries are at an early stage and given the criminal proceedings it is not possible nor would it be appropriate to comment any further."

The alleged offense carries a penalty of 5,000 pounds, but if found guilty Forsey will carry a criminal record and could be banned from holding directorships for up to 15 years. He leaves his role at Mash Holdings after a ten year tenure.

News of Forsey's charges broke as Sports Direct founder and Executive Chairman, Mike Ashley, was accused of "disgraceful and unlawful employment practices," after 50 former USC employees were awarded compensation last week. The workers, who launched a case against Sports Direct, received a "protective award" equal to 90 days pay after Glasgow's employment tribunal heard that USC warehouse workers in Dundonald were fired 15 minutes before the warehouse was shut down.

According to UK employment law, employees should be given at least 30 days notice before being made redundant. "This judgement from the tribunal is very good news for the former employees at Dundonald who brought the case," said Rory McPherson, a partner at Thompsons Solicitors, which represented the 50 workers.

"They showed courage in standing up to and beating a rich and powerful employer like Mike Ashley who used disgraceful and unlawful employment practices."