Andy Higginson, chair of JD Sports, resigned on Wednesday after a failed attempt to oust chief executive Régis Shultz, sources have revealed. The decision was described as "mutual" between Higginson and the board, following his inability to secure enough support to remove Shultz amid slowing sales and stalled progress in North America.
Background of the Power Struggle
According to reports, Higginson had been pushing for Shultz's removal due to the company's underperformance in the sportswear market and lack of advancement in the US. However, majority shareholder Pentland backed Shultz, leading to Higginson's departure. Some executives reportedly agreed with Higginson, but he failed to garner sufficient backing, resulting in his own exit.
An insider told the Financial Times: "It's natural for a board to have discussions about the right leadership, particularly in a tough trading environment, but there was not a binary decision."
Official Statements
JD Sports confirmed the mutual agreement, stating: "It was mutually agreed between Andy and the board that this is the right time for a change of chair; there has been no disagreement about the board's continued support for the CEO. The board is grateful for the valuable role that Andy has played during his tenure at the business."
Shultz responded: "I'm grateful to Andy for his support and counsel through a critical and transformational period for the Group. His leadership and experience have been crucial in building the capability we have around the Board today."
Higginson's Retail Career
Higginson is a seasoned retail executive, having served as an executive director at Tesco for 15 years, chair at Morrisons, and non-executive chair at Poundland. He joined JD Sports as chair in 2022 and will step down after the annual meeting in July.
Company Performance
JD Sports reported a 1.8% decline in global sales in the three months to January, with sales falling 3% in Europe and 5% in the UK. The company cited a volatile consumer environment but maintained its pre-tax profit target of £849 million.
Darren Shapland has been appointed interim chair while the board searches for a permanent replacement.
