Topps Tiles’ largest shareholder has again hit out at the chain over its acquisition of CDT Tiles after the CMA threatened an in-depth investigation.
MS Galleon, which owns 29.9% of the retailer claims the deal was ‘costly and poorly thought out.’ It has previously criticised the deal for 30 CDT stores, brands, IP and select stock. It says Topps overpaid on the deal and failed to conduct sufficient due diligence.
‘We have, on multiple occasions, raised concerns about the strategic rationale for the acquisition of CTD and the unreasonably high valuation. ‘[The] CMA decision only serves to reinforce these longstanding concerns around this transaction,’ says Piotr Lipko, MS Galleon md.
‘What the board should be focused on is strategically repositioning the business, central to which will be delivering a modernised, omni-channel customer proposition with a vastly improved digital offering, while executing the succession plan for the ceo, Rob Parker, at pace.’
The CMA has given Topps until 24 February to provide evidence that consumers in four areas will not suffer from a lack of competition.
