Sports Director founder Mike Ashley has announced he will be stepping down from his retail empire and handing it down to his prospective son-in-law.

The company confirmed the Newcastle United owner will be stepping down as chief executive of Frasers Group next year.

The parent company of Sports Direct, House of Fraser and Flannels said it is currently proposed that Michael Murray – the retail tycoon’s prospective son-in-law – will become chief executive in May

Mr Ashley will remain on the board as an executive director.

He said: “The group is continuing to invest in its physical and digital elevation strategy and our omni-channel offering is growing in strength.

“Our stores in the UK have reopened above expectations and our online channel continues to significantly outperform pre-Covid-19 periods.

“Nonetheless, management remains of the view that there is a high risk of future Covid-19 pandemic restrictions, likely to be over this Winter and maybe beyond.”

Mr Ashley founded Sports Direct in Maidenhead, Berkshire, in 1982 and has now grown his retail empire to be worth around £3 billion and cover almost 1,000 stores.

Frasers also revealed on Thursday that its profits plunged for the past year after sales were hit by enforced high street closures during the pandemic.

The retail giant said pre-tax profits dived by 94.1% to £8.5 million for the year to April 25, compared with £143.5 million in the previous year.