// Topps Tiles shareholder MS Galleon has reiterated calls for non-executive chairman Darren Shapland to be removed as ‘a necessary step’ for the business to return to growth
// MSG is also planning to launch a retail business in the UK, which it claims is an opportunity not a threat to Topps Tiles
Topps Tiles’ major shareholder MS Galleon has hit back at the tile retailer as its bitter boardroom battle continues.
Last week, Topps accused MS Galleon (MSG) of misleading other shareholders and claimed it tried to leverage its equity in the business to get the retailer to buy more tiles from MSG’s tile manufacturing division.
MSG responded to the accusations and repeated its call for non-executive chairman Darren Shapland to be removed immediately as a “necessary step” for Topps Tiles to “return to growth” and to guarantee shareholders results in line with the market.
The firm urged Topps Tiles shareholders to support its requisition resolutions, which include Shapland’s removal, which will be voted on at the Topps AGM on 18 January.
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MSG, which described Shapland’s track record as “dire”, cited a number of reasons for wanting his removal, including a drop in earnings per share, a fall in market share, and to what it believes is the stagnation of the Topps online offering under his tenure.
Meanwhile, MSG has said that Nexterio, the retail chain it plans to open in the UK, is not a competitor to Topps Tiles.
It said: “Nexterio is focused on the consumer and not traders and installer. It offers complete bathroom solutions, and it competes against the online pureplay and DIY stores and not specialists such as Topps Tiles.”
It says that Nexterio, which already has 40 stores in Poland, attracts a younger demographic than Topps and 40% of its sales are made online.
“Nexterio has an effective logistics capability. Therefore, Rob Parker [Topps CEO] asked MSG on 24 November 2022 to invest into a distribution in the UK of the large, on trend tiles and heavy outdoor tiles. Topps Tiles’ own warehouses are too small and insufficiently equipped to service this growing part of the market.
MS Galleon managing director Piotr Lipko said: “Rather than using company’s resources to attack its major shareholder, Topps Tiles should focus on turning around the company from over seven years of deterioration.
“Topps Tiles should concentrate on reversing the declining margin, growing its market share and improving falling profits.
“The objective of MS Galleon’s requisitions is simply to improve the performance of Topps Tiles, increase its market value, and maximise returns for all shareholders.”
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