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JD Sports is reportedly facing questioning over a multimillion-pound non-compete deal signed by former CEO Peter Cowgill, The Telegraph has reported.
It comes amid speculation over Cowgill’s exit package with the group after he became a significant shareholder in a sports equipment maker.
Under a non-compete deal signed in September last year, JD Sports agreed to pay Cowgill £3.5m to block him from working or advising any competitors for the next two years.
However, it was later revealed that Cowgill invested in Fortitude Brands, a sports equipment maker which trades under the brand Pulseroll.
According to Companies House filings, he has taken at least a 25% stake in the business and was appointed as a person with significant control last month.
Cliff Weight, a member of the campaign group ShareSoc, which represents JD shareholders, questioned whether Cowgill was “honouring the spirit” of the non-compete agreement, The Telegraph said.
Last month, it was reported that Cowgill was considering a return to retail after being approached by a private equity firm to head up a menswear brand.
According to The Telegraph, Cowgill was approached to take over luxury menswear brand Mainline, which is currently owned by JD Sports.
However, according to the outlet, the retailer is understood to be sounding out buyers for its designer clothing company as part of a drive to focus more on sportswear.
Cowgill stepped down from his role at JD in May last year and remains as a consultant as part of the terms in his exit package.
With nearly 20 years of experience as chairman and CEO of JD, Cowgill helped the footwear retailer through an extended period of growth and earned a reputation as one of the country’s “most accomplished retailers”.
Cowgill had been executive chairman of the sportswear group since 2004 and took on chief executive responsibilities in 2014.
JD Sports declined to comment.
