Embattled Sports Direct rejects chairman's offer to step down

Britain's Sports Direct said on Wednesday it had rejected an offer by its chairman to step down over failings in its working practices, hours before investors are expected to register their anger at him at a shareholder meeting.

The sportswear retailer said Keith Hellawell had been asked by the board, which includes the company's founder and majority shareholder, Mike Ashley, to continue in his role as chairman.

"Hellawell had offered to step down over the weekend in the light of the shortcomings highlighted in (a Working Practices) report, but he will stay in his role in order to assist with making further improvements," Sports Direct said.

Hellawell faces a rough ride from investors at Sports Direct's annual shareholder meeting later Wednesday. A number of investors, including Legal & General, have said they will oppose his re-election.

Ahead of the meeting Sports Direct said Ashley has confirmed to the board that it remains the case that he has no current intention to take the company private.

It also updated on its outlook, forecasting underlying earnings for its full year 2017 of about 300 million pounds, broadly in line with market forecasts.

The group, which had previously failed to give a profit outlook for the year, made core earnings of 381.4 million pounds in its 2015-16 year

It said the forecast was, however, subject to group sales growth of at least 9 percent, a group gross margin decline of no worse than 275 basis points and an increase in operating costs of no worse than 8 percent.

The firm reiterated that it remained unhedged on the U.S dollar/pound sterling for 2017 with the policy under review.