A significant shareholder rebellion has raised questions about leadership at a major UK tile retailer, with nearly 40% of investors voting against its remuneration report during the company's recent annual general meeting.
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The revolt was led by MS Galleon, an Austrian private equity firm and the retailer's largest shareholder, holding a 29.9% stake. Their opposition contributed to 39.5% of shareholders rejecting the pay resolution. A similar proportion of investors also opposed the reappointment of outgoing chief executive Robert Parker and director Diana Breeze.
Topps Tiles' board responded by pledging to 'consult and engage with the relevant shareholders to understand and discuss their views' in light of the vote. The controversy follows Parker's announcement last week of his resignation, set for late 2025, after persistent criticism from MS Galleon. The investor has previously accused the retailer's leadership of being 'incapable of recognising the seriousness of the current situation' and criticised it for failing to adapt effectively to the challenges of online retail.
MS Galleon warned that the business was in 'significant danger of ceding further ground to competitors' and expressed 'grave concerns' about its direction in recent years. Despite these criticisms, the retailer reported a 4.6% rise in like-for-like sales for the 13 weeks to 28 December 2024, compared to the same period the previous year.
Defending its performance, the retailer has highlighted its ability to outperform the UK tile market and its ongoing efforts to expand its digital presence. Chairman Paul Forman emphasised that digital innovation remains central to the company's growth plans. He stated, 'Further expansion of our digital capabilities is at the heart of many of these growth initiatives. Our latest results show that we continue to take market share, consistently outperforming the wider tile market despite very challenging trading conditions.'
The search for Parker's successor is underway, with a new appointment expected by late 2025. As the company navigates these challenges, it remains focused on enhancing its market position and addressing investor concerns.
Source: www.retailgazette.co.uk