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Sports Direct shares were dropped on Monday after the retailer revealed last week that it was facing a last-minute Belgian tax of 674 million euros at the end of a hectic day that has heightened concerns about to the retailer's governance.
The fall of the shares of the company created and led by Mike Ashley came after a frenetic day last Friday during which it was forced to delay the publication of its annual results of 10 hours. He had already postponed the publication earlier in July.
It was finally revealed that the reason for the delay was attributable to the Belgian tax debt which appeared at "the eleventh hour". The late publication of the results coincided with the departure of CFO Jon Kempster, who will leave in September.
In addition to the tax bill, annual results have highlighted "serious problems at the heart" of Sports Direct, said Jonathan Pritchard, an badyst at Peel Hunt. Sports retail sales in the UK, its largest division, declined 2.9% from year-to-date acquisitions as of April 28, according to financial data released Friday.
The struggles in the sports division come as badysts were already deeply concerned about the fate of Sports Direct's acquisition of the distressed department store House of Fraser.
"It was not a difficult year digitally, and the revelation that House of Fraser was a mistake was obviously in the message, but the home truths about Sports Direct's core business were quite shocking and the direction seems to be absent from ideas, "Pritchard said.
Sports Direct shares fell 28% just after the opening of markets in London, but were reduced to 11%.
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