By guest author Sahar Nazir from Retail Gazette
- Frasers Group chair David Daly bought shares during closed period
- Daly joined Frasers Group in 2017 following a 30-year career at Nike
Mike Ashley’s Frasers Group has revealed that its non-executive chairman David Daly bought 3912 ordinary shares in the company “in error” on Monday, August 17, 2020.
The purchase – worth more than GBP 11000 – is in violation of City rules and is the latest from a bundle of controversies for the retail empire.
Frasers Group, which owns Sports Direct, House of Fraser, Evans Cycles, Game and Jack Wills among others, said the error took place during a closed period in the run-up to its results this Thursday, August 19, 2020.
The rules under a closed period are aimed at preventing an individual profiting from any inside information.
Daly sold the shares within 15 minutes and donated profits on the sale to charity.
“The issue was rectified as soon as it came to the company’s attention and the shares were sold within 15 minutes of their purchase,” Frasers Group said. “A small profit was made on the sale which David Daly has donated to charity.”
It said the “robust procedures” it had in place were “accidentally” not followed in this instance.
Daly joined Frasers Group in 2017 following a 30-year career at Nike. He is responsible for setting the company’s corporate pay policy.
The company is preparing Thursday’s annual results, which will give the first insight into its trading since March.
It is the second time that Frasers Group’s full-year figures have been delayed.
Last week, the company said it needed more time to complete accounting disclosures, and last year it blamed the strenuous procedures that followed the acquisition of struggling department store chain House of Fraser.
Ashley’s other investments have included building a stake in Hugo Boss and French Connection.
Just this week, he placed over a GBP 30 million bid on collapsed sports retailer DW Sports.