Whatever else he may be, Sports Direct tycoon Mike Ashley is commendably plain-spoken.

As he presided over a car-crash set of results, delayed by a surprise last-minute tax demand from the Belgian authorities, Ashley was forthright about some of the issues Sports Direct faces.

The problem is that his willingness to confront home truths raises more questions than answers – including some fundamental concerns about the future of the business.

Ashley has been one of retail’s great entrepreneurs. He built Sports Direct from scratch and turned it into a powerhouse, all the while remaining a sole trader almost until the retailer’s IPO in 2007.

“The brands on which Sports Direct will rely to propel its proposition upwards aren’t especially keen to play ball”

He is one of the original disruptors and he is willing to disrupt his own business. One of the most striking comments he made last week was that Sports Direct “is not the future of the company… the next generation of consumer does not want the old SD way of shopping, it’s as simple as that”.

It is quite a statement, given that the UK sports division accounts for the lion’s share of group sales and profits. It provides the “engine”, though, for what Ashley does see as the retailer’s future – a shift upmarket, or “elevation” to use the tycoon’s term.

But perhaps as a hangover from the days when Sports Direct could afford to take a tough stance towards big-name labels, the brands on which it will rely to propel its proposition upwards aren’t especially keen to play ball.

As Peel Hunt analyst Jonathan Pritchard noted: “The elevation programme isn’t currying favour with brands and the shopper has moved away from the core SD.

“This is far more important than any tabloid headlines the chief executive may garner and probably more share price relevant than the Belgian tax claim. Retail moves at pace: sports retail has been no different and Sports Direct has been skinned.”

Dark days

As Sports Direct struggles to develop its new model at the speed it would like, concerns about how things could pan out were further stoked by Ashley’s admission that there may not be enough management “bandwidth” to oversee its transformation – perhaps no surprise at such a sprawling empire.

The imperial outposts range from Evans Cycles to Sofa.com, Game to House of Fraser, along with stakes in Findel and French Connection. The scale of problems at House of Fraser alone, described as “nothing short of terminal in nature”, are daunting.

Even so, Ashley has allowed himself to be distracted – notably by Debenhams, where his stake was wiped out when it plunged into administration. There was more about Debenhams in the results statement than there was about House of Fraser.

“As Sports Direct seeks a new direction and a new model for the future, success will depend upon unremitting focus”

It is astonishing that as Sports Direct’s problems were mounting, Ashley was campaigning to have himself installed as Debenhams’ chief executive.

He maintained last week that one of the advantages of being a listed company is the scrutiny it brings. He said: “I like being challenged, even when I’ve had dark days. It’s good because it makes you look at everything. People are going to think of tricky questions, so you get a proper challenge from outside, which is good.”

But he could do with more challenge, including from inside Sports Direct. You have to wonder to what extent the small pool of non-executive directors and senior management have the ability and inclination to ask those tricky questions and mount those “proper” challenges.

It looks as if there is more turbulence to come. Sports Direct’s auditor, Grant Thornton, reportedly intends to sever its 12-year relationship with the retailer following its AGM in September. The parting of ways is related to the Belgian tax demand, it is understood.

As Sports Direct seeks a new direction and a new model for the future, success will depend upon unremitting focus. At the moment Ashley and his team look too thinly spread, particularly since trusted retail boss Karen Byers abruptly left after 28 years’ service.

Ashley’s desire to be challenged should be taken at face value – but for that to happen he needs board members willing to do it.