Mike Ashley, the founder of Sports Direct and Frasers Group, has confirmed he was behind the secret filming that ultimately led to the resignation of Peter Cowgill as chairman of rival retailer JD Sports. Ashley stated that individuals in his employ were responsible for recording footage of Cowgill meeting with Barry Bown, the boss of Footasylum, in 2021.
The clandestine recording, which captured Cowgill in a car talking with Bown, emerged publicly and created significant controversy for JD Sports. The incident took place amidst a period of intense scrutiny over JD Sports' acquisition of Footasylum, a deal that had attracted the attention of competition regulators. The Competition and Markets Authority (CMA) had, at the time, ordered JD Sports to sell Footasylum due to competition concerns.
The revelation that Ashley, a long-standing rival in the sports retail sector, orchestrated the surveillance adds a new dimension to the competitive landscape between the two retail giants. The footage itself raised questions about the nature of the relationship and communication between Cowgill and Bown, particularly given the ongoing regulatory challenges surrounding the Footasylum acquisition.
Following the emergence of the video and subsequent pressure, Peter Cowgill, who had been a prominent figure at JD Sports for many years, resigned from his position as executive chairman. His departure marked a significant change in leadership for the Bury-based sportswear retailer, which is a major employer and high street presence across the UK.
This admission by Mike Ashley highlights the often-aggressive competitive tactics employed within the UK retail sector. It underscores the intense rivalry between key players like Frasers Group (formerly Sports Direct International) and JD Sports, both of whom vie for market share in the lucrative sports fashion and equipment market.