Mike Ashley, the renegade founder of Sports Direct, is expected to name himself as chairman of the sports retailer this week, a move that will raise serious governance concerns.

The Sunday Times reports that Ashley, currently deputy chairman of the group he founded and still owns a 70% stake in, will step up to chair the group this week.

It is understood that advisers to Sports Direct see the move as a solution to the fruitless search for a new independent chairman, which has been underway since May when then chairman David Richardson stormed out of the company after a face-off with the board.

The plan is then to recruit a tough, independent deputy chairman to keep Ashley in line.

If Ashley does step up to chairman, the move will raise serious governance concerns. The Combined Code specifies that a chairman must be independent and that if this is not the case then investors must be consulted about diverging from the code.

Shares in Sports Direct have fallen 70% since it floated on the public markets and investors have never been comfortable with Ashley's maverick business style.

Further reading:

City blast for Sports Direct

Sports Direct's FD enjoys mega-bonus