Sports Direct Auditor Quits After Huge Tax Bill

sherbrook_loyal

Administrator
Staff member
Another blow for Jabba the Hutt? :))

https://www.belfasttelegraph.co.uk/business/uk-world/sports-direct-auditor-grant-thornton-quits-after-huge-tax-bill-38402547.html

This bit in particular could prove to be interesting:

"With its annual results, Sports Direct said it had held “early discussions” with the big four accountancy firms about a tender process to replace Grant Thornton.
It said PWC had a “reluctance to engage due to its ownership structure”, while KPMG, EY and Deloitte said they would have conflicts due to other clients.
It is understood that Grant Thornton’s resignation leaves the retailer struggling to find a firm to audit its books.
Sports Direct has asked the UK Government to clarify how it might act if it becomes the first major UK-listed business to fail to appoint an auditor, according to reports in the Financial Times.
It is understood that the accounting watchdog, the Financial Reporting Council, is also in conversations with Sports Direct."
 

RFC_Falkirk

Well-Known Member
The cynic in me thinks the falling share price is good for him. He buys back shares at a low price and sells when the market recovers

But I'd rather the walking heart attack got what's coming to him
 

Shongo

Well-Known Member
Would be interesting if we see another scenario like Goals (ironically enough with Ashley being a share holder there) where they get a new auditor and a forensic examination of the accounts which then unearth a lot of discrepancies.
 

Earl of Leven

Well-Known Member
Official Ticketer
Surely some shareholders will be desperate for them to get rid of loss making, yet deliberate, mistakes like contract with us? It makes no sense for them to be losing money AND pursuing a vendetta.
 

Sandbear

Well-Known Member
The cynic in me thinks the falling share price is good for him. He buys back shares at a low price and sells when the market recovers

But I'd rather the walking heart attack got what's coming to him
The market doesn’t matter it’s the sentiment to SD if the market doesn’t like what they do they advise to sell makes no difference if the market rises they will still drop.
The falling stock price could be good in another way for him if he can borrow enough to buy up all the shares taking the company private.
 

imvaison

Well-Known Member
Would be interesting if we see another scenario like Goals (ironically enough with Ashley being a share holder there) where they get a new auditor and a forensic examination of the accounts which then unearth a lot of discrepancies.
This could be a possibility. For years the Financial Reporting Council have been hampered by lack of muscle but this is being addressed.
 

Starting Anew

Well-Known Member
The big 4 know there is something very fishy about his accounts. Senior executives have voluntarily walked in the past few weeks.

I smell jail time for him and his cohorts for fraud etc.
I’ve said this before but I do think that the senior directors walking away is suspicious from the way that we know Ashley does business. I wonder if they are establishing ‘independence’ to form a Phoenix group for a prepack administration and let Ashley discharge various debts that way. Not an expert in such things but it sounds very familiar to what he did to us and others with placeholders on the board. With his crown jewel, he would want his most loyal henchmen running it.

Nonetheless, it still hopefully gives us a lot more options in our disputes if his business is circling the swanny.
 

jweebear

Well-Known Member
The government financial watchdog should be asking, why no accountancy firm will audit their books.
 

Marty101

Well-Known Member
In passing, SDI Retail Services Ltd, the company suing RFC, does finally seem to have done something to sort out their Companies House filing - the strike off application which was pending has been discontinued.

Their accounts still haven't been lodged though (they were due at the end of April.)
 

Mr_Miscellaneous

Well-Known Member
In passing, SDI Retail Services Ltd, the company suing RFC, does finally seem to have done something to sort out their Companies House filing - the strike off application which was pending has been discontinued.

Their accounts still haven't been lodged though (they were due at the end of April.)
They were on the strike list, for over a month, and nobody in the press picked up on it?
 

Discodale

Well-Known Member
If, as people have mentioned in the past, he buys more stock himself and makes the company private, does that make a lot his problems with the likes of filing accounts and having no auditors go away?
 
In passing, SDI Retail Services Ltd, the company suing RFC, does finally seem to have done something to sort out their Companies House filing - the strike off application which was pending has been discontinued.

Their accounts still haven't been lodged though (they were due at the end of April.)
I noticed that change the other day, rather suspect don’t you think?
 
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