Mike Ashley’s Sports Direct came under further attack from the City yesterday when two analysts issued notes questioning the viability of the retailer’s business model as well as the credibility of the company’s management team.

Shares sank 2.4 per cent to 143½p as Fred Bjelland at Morgan Stanley took the rare step of removing his price target for Sports Direct. He said that the company would continue to record falling sales as it was being forced to move away from its familiar “pile it high” strategy.

“We believe that the Sports Direct business model is showing signs of cracking,” Mr Bjelland said. He added that a lack of direct contact with the management meant that he had “limited confidence in our revised forecasts and management guidance”.

Sports Direct has been under almost constant criticism from the City since it joined the stock market in March. The share price is now less than half its initial 300p. Mr Ashley has been criticised for poor communication, most recently regarding underlying sales performance during this summer’s poor weather. Last week he called shareholders “cry babies”, dismissing their concerns.

Analysts criticised Sports Direct’s “scattergun” acquisition strategy as the company revealed it had taken a €138 million (£93 million) stake in Amer Sports, of Finland. The move came soon after it bought stakes in Field & Track and adidas.

Nick Bubb, an analyst at Pali International, said: “Sales at Sports World were pumped up to unsustainable levels as the stores turned into ‘sports bazaars’ and, inevitably, Sports Direct is feeling the consequences now.”

Tom Knight, the chief executive of JJB Sports, is to retire from the board of the sports retail and health clubs group to “focus on opportunities in the private equity market”. The group said that he would remain with JJB as an employee for six months concentrating on “special projects”. Chris Ronnir has moved up from deputy chief executive.

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