Topps Tiles, the UK’s largest tile retailer, faced a major shareholder rebellion at its annual general meeting on Wednesday, reports The Times, with nearly 40% of investors voting against the company’s pay report and key leadership reappointments.
MS Galleon, the Austrian private equity firm and the retailer’s largest shareholder with a 29.9% stake, led the dissent, criticizing Topps Tiles’ leadership and strategy. The firm’s opposition contributed to 39.5% of shareholders voting against the remuneration report and similar opposition to the reappointment of outgoing CEO Robert Parker and director Diana Breeze.
In response, the board pledged to “consult and engage with the relevant shareholders to understand and discuss their views.” The company’s shares fell 2.5% on the day, closing at 34¾p, and are down nearly 24% over the past year.
Parker, who has served as CEO since 2019, resigned last week following sustained criticism from MS Galleon, which accused the leadership of failing to adapt to the online retail landscape and losing competitive ground. His replacement is expected to be announced later this year.
Despite the upheaval, Topps Tiles reported a 4.6% increase in like-for-like sales for the 13 weeks to December 28, driven by strong demand from trade customers. The company defended its performance, highlighting its market outperformance and growth in digital capabilities.
Paul Forman, chairman of Topps Tiles, 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.”
MS Galleon, however, remains unconvinced, citing “grave concerns” about the retailer’s direction and warning that it is at risk of losing further market share to competitors.
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