Sports Direct is understood to have been dealt a further blow as the candidate expected to take over as deputy chairman of the sports retailer is believed to have rejected the job.

The news came as founder Mike Ashley was due to announce the appointment to the City.

According to The Times, Alan Jackson, the non-executive chairman of The Restaurant Group – owner of the chains Garfunkel’s and Frankie & Benny’s – turned down the job offer yesterday.

The move could upset the boardroom reshuffle that was expected. It is understood that Ashley was to move from deputy chairman to chairman tomorrow, when Sports Direct presents its half-year results.

Sports Direct has been searching for a non-executive chairman since David Richardson walked out at the end of May. It was believed that Ashley would take the role and recruit a new deputy chairman. Simon Bentley has served as acting chairman since May.

At the EGM tomorrow, Sports Direct will seek to extend its buy-back, in a move that could take Ashley’s stake in the business to 72 per cent, prompting rumours he will take the company back into private ownership.