Topps Tiles has hit back at a major shareholder who accused the firm of numerous failures and called for an overhaul of its management and strategy. MS Galleon, which owns a 29.9 per cent stake in Britain's largest tile retailer, warned the business was in 'significant danger' of losing further market share to rivals.
In an open letter written by its managing director, Piotr Lipko, the Vienna-based company blamed Topps' leadership for multiple 'strategic missteps and operational failures.'. Lipko claimed the business had displayed a 'complete failure' to adapt to the changing retail backdrop and had shown a 'continued lack of engagement and willingness' to listen to MS Galleon's concerns.
He also lambasted Topps Tiles for a 'disastrous' takeover of CTD Tiles, whose brands and intellectual property, along with 30 stores, were bought out of administration in August. It urged the company to perform a 'comprehensive review' of its leadership and strategy to help create a more omnichannel and only-focused business.
Boardroom row: Topps Tiles is battling its biggest shareholder MSG, which has called for its chairman to be ousted and for two representatives to take seats on its board. The letter was published two days after the results showed Topps Tiles' slumped to a £16.2million pre-tax loss in the year ending 28 September following a 9.1 per cent drop in like-for-like revenues.
