(Alliance News) - Sports Direct International PLC on Wednesday called for an investigation into Goals Soccer Centres PLC and strongly hinted at the possibility of widespread fraud.
"The behaviour of the Goals board, and its apparent failure to spot and deal with the issues, amounts to incredible incompetence and ignorance, wilful or otherwise, at the very least and potentially far worse," said Sports Direct.
On Monday, 19% Goals shareholder Sports Direct dropped plans to make a 5.0 pence per share takeover offer for Goals - a 5-a-side football pitch operator - due to what it described as "limited" and "fitful" access and cooperation from the Goals board.
However, a Goals spokesperson responded that same day, saying: "Goals has provided Sports Direct with all of the information they have requested as and when it became available. The board has not frustrated in any way Sports Direct from making an offer for the business."
Sports Direct said it disagrees, claiming that "key information including access to forensic accounting reports as well as the ability to engage with the main lender was provided to Sports Direct extremely late in the process".
Moreover, Sports Direct said "Goals' board was not then willing - or able - to agree to an extension of time for consideration of the potential offer."
Going even further, Sports Direct said it "continues to believe that all relevant matters should be fully investigated, by both the AIM regulators and an independently appointed third party." And moreover, thinks its "would be convenient for those concerned" if Goals' corporate history "disappeared".
Goals was forced to cancel its shares from the AIM market in London at the end of September due to what it described as improper behaviour on the part of "a small number of individuals historically within the company", which resulted in accounting errors over value-added tax.
"From the beginning, the attitude of the Goals board made no sense, including proclamations to senior management of Sports Direct that the issues impacting on, and leading to the catastrophic failure of, the business had only been perpetuated by one person," Sports Direct said.
Sports Direct shares were down 0.1% early Wednesday at 319.80 pence.
By Anna Farley; annafarley@alliancenews.com
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