Dr Martens has been targeted by an activist investor after its shares fell due to a sales decline and supply chain issues.
Shares in the footwear company increased yesterday by roughly 6% after Sparta Capital became one of its biggest shareholders by obtaining stock worth “tens of millions of pounds”, according to Sky News.
The news comes after the valuation of Dr Martens fell following a decline in sales and weakening demand in the US market.
The company was valued at £3.7bn after its initial flotation two years ago but is now worth just £1.46bn.
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Sparta Capital styles itself as a “constructive activist” and is understood to be in talks with the Dr Martens board to help the brand.
Earlier this month, Dr Martens said it would be focusing on the Americas region, after its sales in this area were lower year-on-year during the first quarter.
The business said it expected it would take until the second half to see a meaningful improvement in performance in this area.
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