Ex-audit watchdog lined up to chair Ashley's retail empire

The former head of Britain's audit watchdog is being lined up as the next chairman of high street billionaire Mike Ashley's London-listed retail empire.

Sky News has learnt that Sir Jon Thompson, who joined the board of Frasers Group earlier this year as a non-executive director, is expected to take over from David Daly at some point next year.

City sources said on Friday that Sir Jon's appointment as chairman had yet to be finalised by Frasers' board, but added that it was almost certain to take place.

If confirmed, it would underline a remarkable turnaround in the company's approach to corporate governance in recent years, having earned a reputation as a maverick presence on London's public markets.

Sir Jon, who chairs the troubled HS2 high-speed rail link project, is a former head of the Financial Reporting Council (FRC), the regulator which oversees corporate governance, the UK tax authority and permanent secretary at the Ministry of Defence.

He is said to have forged a constructive working relationship with both Mr Ashley and his son-in-law, Michael Murray, who is now Frasers' chief executive.

During Sir Jon's time at the FRC, the watchdog fined Grant Thornton £1.3m for what it labelled were "serious failings" in its audit work on Sports Direct International, Frasers' previous name.

Mr Daly, who also sits on the board of Fulham Football Club, has chaired the company since 2018.

The group has become one of the London stock market's most prominent retailers, and has a market capitalisation of £3.3bn.

In recent years, it has acquired a string of distressed retail businesses, including Evans Cycles, Gieves & Hawkes and Jack Wills.

It also holds stakes in a large number of listed chains, including Currys and Mulberry.

Mr Ashley is currently waging a public fight with Boohoo, the online fashion retailer which owns Debenhams, where Frasers is a major shareholder.

The tycoon wants Boohoo to appoint him to its board in an attempt to address the steep decline in its valuation.

Boohoo has rejected the request, paving the way for a prolonged battle between them which could result in the staging of an extraordinary shareholder meeting.

Frasers declined to comment on Sir Jon's prospective appointment.