Mike Ashley, founder and majority shareholder of retailer Sports Direct, will take over as chief executive of the scandal-hit group following the resignation of Dave Forsey.
Ashley will take over the role with immediate effect.
The management change comes after months of growing pressure on the company, which has been criticised for its working conditions and poor corporate governance.
In a statement released on Friday, Ashley said: "I feel like I have lost my right arm, but I do hope to have the opportunity to work with Dave again in the future."
The announcement does not make clear why Forsey has decided to leave the company after working there for more than 30 years.
Dave Forsey said: “I have given my entire working life to the company and in return the company has given me amazing opportunities and experiences.”
The news was announced just days after Sports Direct bowed to pressure and pledged to undertake an independent review of working practices and corporate governance.
The decision to undertake the review was made after independent shareholders rebelled at the retailer's annual general meeting earlier this month, with 53 per cent opposing the re-election of Chairman Keith Hellawell.
MPs compared working practices at Sport Direct’s Shirebrook warehouse to a “Victorian workhouse” in a scathing report into working conditions released earlier this year.
Ashley, in his first TV interview since the release of the report, said Sports Direct had paid out £200 million in bonuses over the last 5 years, claiming to have even given a cleaning lady a bonus of £80,000.
He also defended his use of private planes and helicopter while his employees were paid less than minimum wage.
Ashley said it would take more than a year to fix the problems at his company.
