Fast fashion firms spark audit woes for Mike Ashley

Two fashion retailers within Mike Ashley’s fashion empire have been hit by audit issues.

Auditors at Cooper Parry were unable to verify nearly £7 million of wages and salary payments at I Saw It First, which was bought by Frasers Group for £1 in July 2022.

And Hart Shaw, auditors for Choice, which Frasers Group bought from JD Sports at the end of 2022, said crucial information needed to complete their work was missing.

The audit problems have sparked fresh concerns over corporate governance standards at entrepreneur Ashley’s fashion empire.

Previously, the Financial Reporting Council investigated the accounts of Sports Direct International – later renamed Frasers – for the 12 months to April 2016. It fined Sports Direct’s former auditor Grant Thornton £1.3 million for ‘serious failings’ in reviewing the retailer’s accounts.

I Saw It First said it lost some payroll data while switching its accounting systems to the ones used by Frasers Group.

A Frasers spokesman said: ‘A limited set of I Saw It First payroll data can no longer be accessed because it was not migrated on to Frasers Group’s systems during the post-acquisition integration process, and the I Saw It First system which it was stored on no longer exists.’

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