JD Sports chair quit after failing to convince board to oust CEO - FT

(Sharecast News) - Andy Higginson reportedly quit as chair of JD Sports this week after pushing for chief executive Régis Schultz to be ousted and failing to win unanimous backing for the move from retailer's board. Higginson argued that Schultz should be replaced after a three-and-a-half-year tenure in which the sportswear business has reported slowing sales and struggled in its key North American market, the Financial Times reported citing four unnamed people familiar with the matter.

While some directors agreed with Higginson, it was not a unanimously held view, they added.

Majority shareholder Pentland, the family-owned sportswear business that owns a 54.9% stake in JD Sports, indicated that it would continue to back the CEO.

After Higginson failed to win unanimous backing there was a "mutual decision" that he would have to be the one to leave, according to another person close to the situation, the report added.

"It's natural for a board to have discussions about the right leadership, particularly in a tough trading environment, but there was not a binary decision," said one of the people. Shares in JD Sports fell 3.4 per cent on Friday morning.

The retailer announced Higginson's shock departure in a statement on Wednesday, including comments from Schultz thanking him for his "support and counsel".

The company told the FT: "It was mutually agreed between Andy and the board that this is the right time for a change of chair; there has been no disagreement about the board's continued support for the CEO. The board is grateful for the valuable role that Andy has played during his tenure at the business."

Reporting by Frank Prenesti for Sharecast.com