SPORTS Direct is to launch an independent review into its working practices and corporate governance after concerns were raised by shareholders.

The retailer, which has stores in Oxford, Bicester and Banbury, initially said the so-called "360 degree" review was to be led by its law firm RPC.

But after discussions with shareholders the Mike Ashley-owned company today said it would "be led by an independent party other than RPC" instead.

It comes as it faces sharp criticism over working practices at its warehouse in Shirebrook, Derbyshire, and of its governance.

It was revealed some warehouse staff were paid below the national minimum wage.

Sports Direct moved to address concerns by offering casual retail staff guaranteed hours instead of zero hours contracts and ensuring all warehouse staff were paid above the national minimum wage following the initial review by RPC.

In addition, the company said that the selection process for having a workers' representative on the retailer's board will be via "democratic staff elections, in which it is anticipated that all staff directly engaged or employed by Sports Direct may vote".

Speaking after the decision to launch the independent review, a Sports Direct spokesman said: "The board has made this decision after listening to shareholder feedback at the recent AGM/Open Day and during subsequent consultation with a number of the company's long-standing shareholders via the Investor Forum.

The Investor Forum consists of investors holding assets worth more than £14 trillion and the move comes after independent shareholders rebelled at the retailer's AGM, with 53 per cent opposing the re-election of chairman Keith Hellawell.