A significant shareholder in Topps Tiles is urging changes in senior management due to strategic missteps.
- The shareholder, MS Galleon, holds a substantial 29.9% stake in the company.
- They criticised the acquisition of CTD Tiles, deeming it irrational and damaging for the firm’s interests.
- Concerns were raised about the perceived overpayment and lack of due diligence in the acquisition.
- This isn’t the first call for change, following past demands to replace previous management.
A major shareholder of Topps Tiles, MS Galleon, has called for significant changes in senior management following what they describe as numerous strategic errors. Holding a substantial 29.9% of the company, MS Galleon recently wrote to the chairman, Paul Forman, expressing their dissatisfaction with the current leadership, citing a failure to adapt to the evolving retail landscape.
The shareholder was particularly critical of Topps Tiles’ decision to acquire CTD Tiles, labelling it as ‘unequivocally irrational’ and claiming it was detrimental to the company’s interests. They argue that the company overpaid for CTD Tiles and did not conduct sufficient due diligence prior to the acquisition. Contrarily, Topps Tiles has defended this decision, stating that they performed adequate due diligence and that the acquisition is expected to significantly enhance growth.
This situation echoes previous tensions between MS Galleon and Topps Tiles. In 2022, MS Galleon sought to remove the then-chair Darren Shapland, who ultimately survived the vote but stepped down the following year. These recurring calls for management changes reflect ongoing shareholder dissatisfaction with Topps Tiles’ strategic decisions.
The continued pressure from MS Galleon signifies serious shareholder concerns about the direction and management of Topps Tiles.
