By Sarah Young
LONDON, Sept 2 (Reuters) - Vilified retailer Sports Direct takes another step in its attempted rehabilitation nextweek when it hosts members of the public and the media at itsheadquarters in northern England, slated for working conditionsakin to a Victorian workhouse.
The 450-store sportswear chain, known for discount offerssuch as mens' polo shirts priced at 5.50 pounds ($7.33), hasbeen condemned by politicians for effectively paying workersless than the minimum wage and by shareholders for poorcorporate governance.
In a u-turn of its previous closed-door attitude, the groupwhich also owns brands such as Lonsdale and Dunlop said lastweek it would invite non-shareholders to an open day on Sept. 7to coincide with its annual shareholders' meeting (AGM), accessto which has traditionally been restricted.
Attendees will be permitted to observe the AGM before beingallowed to question the board, of which billionaire founder MikeAshley, also owner of Newcastle United soccer club, is a member,then touring the site at Shirebrook in Derbyshire.
The Shirebrook warehouse was slammed in a report by Britishlawmakers which said its working practises were closer to thatof a Victorian workhouse than a reputable retailer.
The poor publicity has already prompted a company responseand in August thousands of Sports Direct workers were told theywould receive back pay totalling 1 million pounds ($1.3 millionafter their wages fell short of the legal minimum.
Some investors in the chain, in which Ashley owns 55percent, have rebuked its management and called on the board tolaunch a further independent review of the way it is run.
Yet an open day in itself is unlikely to appease theinvestors, given its shares languish 43 percent down this year,a drop which has wiped hundreds of millions of pounds off thevalue of Ashley's holding.
Investors have called for a review of board oversight,related party transactions and potential conflicts of interest,employment practices, acquisition strategy, oversight ofsupplier relationships and the management of stores.
Voting at the AGM will give them the chance to express theirfrustrations with the company, which has issued two profitwarnings this year, most recently in March.
Shares in the firm also plunged after Britain voted to leavethe EU, dragged down by the collapse in the value of the poundagainst the dollar and the fact Sports Direct had not hedged itscurrency for such an outcome.
Legal & General, Sports Direct's 11th largestshareholder, has already said it will oppose the re-election ofChairman Keith Hellawell as well as the other non-executivedirectors.
Sports Direct is also due to publish next week a report onworking practices following an internal investigation.($1 = 0.7492 pounds) (Editing by David Holmes)
