David Richardson, the former finance director of Whitbread , has resigned as the chairman of struggling retail group Sports Direct after just three months in the job.

Richardson quit because he had been 'unable to establish a strong working relationship with the executive team'.

His resignation follows intense irritation with the company from investors and analysts, who have been frustrated with the relutance of the group's founder and chairman Mike Ashley to engage with the City and appoint financial advisers.

The stock has fallen 31.7% to 205p a share since it listed. The company is now worth £1.47bn compared with £2.2bn when it listed in February.

The departure of Richardson, a City veteran, is believed to have come about because he could no longer tolerate Ashley's refusal to engage properly with investors and follow City protocol.

Further reading:

FDs make bad chief execs

Read an interview with Richardson

Overview: false start