Mike Ashley, who once patterned with Sir Philip Green to set up an iconic business, has walked out on his partner after a row between the two of them. Ashley said that the sales of HMV were being manipulated by Green, and this was something that he did not approve of. It is not just limited to this alone, just a few days ago, Ashley had announced that he would be selling Sports Direct’s Derbyshire headquarter. Mike Ashley is a 54-year-old billionaire who has had many businesses to his credit. His company said that Sports Direct had also sold all its share and holdings in the company Mysale a few weeks ago.
The two partners who had together started many a businesses will now pat ways amid discontent. Mysale was losing its footing in many markets and had recently withdrawn from the UK market. Sports Direct said that ever since the slump that was noticed in the company, the stock value had not had the same strategic place that it once had in the company, and thus, it was necessary to sell that share that they had of the company. With the two subsequent selling, Ashley stands to raise about 121 million pounds in just a matter of days. On one hand, Sport Direct is the oldest company that Ashley has; the Mysale commands no such value on the other. Mysale is an online flash sale website that provides large discounts on luxurious items.
The tussle between the two started with the fall in the sale of HMV. HMV was a music JV that was headed by the two tycoons. Pretty soon, Ashley accused Green of controlling the sale of HMV from behind the scene, a decision that was leading to the fall in the values and the sale of the company. Neither Ashley nor Green are doing quite well financially ever since the decision to merge together in on Mysale. Both of them have lost money in the trade, and while Ashley is out of it, Green’s stake in the company is significantly larger than that of Ashley. Thus, he stands to make a further loss than his partner. At 22 percent stake, he is one of the most senior partners in the firm and virtually owns it alone.
The feud is now supposed to be at an end as both of them have parted ways and are not involved in the same company. It is going to be some time until the two of them start to feel anything but contempt against each other. Green is financially weaker now than he was before, Ashley has not taken a big hit himself, but his company is posting a loss even after revenue amounting in the billions. Both of them now plan to focus on individual ventures and go their own ways in their businesses. Mysale will continue to struggle unless help comes along or another successful investor decides to intervene.