The head of JD Sports has resigned with immediate effect a few months after the retailer was fined more than £ 4 million for violating the rules of the competition regulator with clandestine meetings with a target of acquisition.
The company said Peter Cowgill, president and CEO of JD, which has led the group since 2004, would be temporarily replaced as CEO by Kath Smith, its senior independent director who spent 25 years as general manager. of Adidas and Reebok Brands.
Cowgill, 69, who has sold more than £ 50m in shares of the company for the past two years, is understood to be leaving after trying to block the council’s attempts to shed new blood and split roles of chairman and chief executive officer. , which Cowgill has held together since 2014.
The company was also hit by a shareholder revolt over pay last year after it became known that Cowgill received nearly £ 6 million in bonuses even though the company accepted more than £ 100 million. in government support. The company did not say whether Cowgill would receive a reward.
Cowgill’s sudden departure will be a major blow to the company where he has overseen a change of fortunes since he returned as chief executive three years after leaving the post of chief financial officer in 2001.
Under his supervision, the group has expanded internationally, created a successful online business and joined the FTSE 100 after acquiring a portfolio of brands such as Sprinter, Go Outdoors and Fishing Republic.
JD Sports and Footasylum were fined a total of £ 4.7 million in February for sharing commercially sensitive information. An investigation by the UK competition control body accused them of deleting telephone records and found that their presidents had held several clandestine meetings, including a video recording in a car park near Bury, Greater Manchester. .
JD bought trainer retailer Footasylum for £ 90 million in 2019 in a deal that was subsequently subjected to an in-depth investigation by the Competition and Markets Authority.
Helen Ashton, who is acting as JD’s interim president, said: “The business has grown strongly under Peter’s leadership to become a leading global multi-channel retailer with a proven strategy and a clear drive.
“However, as our business has become larger and more complex, what is clear is that our internal infrastructure, government and controls have not developed at the same pace.
“As we take advantage of the great opportunities ahead, the board is committed to ensuring that we have the highest standards of corporate governance and the right controls for an FTSE 100 company to support future growth.”
The company said it would continue the search process for an executive director and would now start looking for a new non-executive chair.
JD’s majority shareholder, Pentland, said the new leadership and a change in governance structure were “necessary steps to ensure the sustainable and long-term growth of the business and that JD accepts the scrutiny and responsibility it entails. be an FTSE 100 “company.
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Pentland said in a statement: “The JD team, led by Peter Cowgill, has achieved a period of unprecedented success over several years that has led to significant growth in the business and its operations.
“With this growth comes the responsibility to ensure that the business continues to evolve its internal organization. As supportive and long-term shareholders, we recognize that now is the right time for the company to fulfill its future ambitions with a new business structure. government and new leadership “.
In February, JD said it was delaying the publication of its annual results in part because it wanted to complete a review of its government procedures and policies. The announcement is expected next month.