Activist fund Gatemore Capital builds stake in DFS

DFS
Gatemore is expected to have had initial discussions with DFS' board
// Gatemore Capital Management takes stake in DFS
// The company has previously held stakes in retailers including French Connection, Moss Bros and Superdry
// DFS has a market capitalisation of just over £700m

DFS has reportedly sold a stake to Gatemore Capital Management as its investors were informed that its weak share price performance left the retailer exposed to a private equity bid.

Gatemore told its fund investors last month that it has started building a stake in the homewares retailer, which has yet to be publicly disclosed.

The company has previously held stakes in retailers including French Connection, Moss Bros and Superdry.


READ MORE: DFS revenue smashes £1bn as Brits spend on homes during Covid


It believed that DFS was undervalued by the public markets, Sky News reported.

DFS has a market capitalisation of just over £700 million, having seen its shares rise by nearly 30 per cent in the last year.

The retailer currently has over 180 showrooms across the UK, and has signalled ambitions to expand the Sofology brand it acquired in 2018.

Gatemore is expected to have had initial discussions with DFS’ board, which is led by chairman Ian Durant and chief executive Tim Stacey.

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