Austrian Investment Giant MS Galleon Launches Fresh Critique of Topps Tiles Following Competition Authority Review

The largest shareholder in Topps Tiles has launched a scathing criticism of the retailer after the Competition and Markets Authority (CMA) raised the possibility of an in-depth investigation into its CTD Tiles acquisition.

MS Galleon, an Austrian private equity firm holding a 29.9 per cent stake in Topps Tiles, has described the £9 million takeover as a “costly and poorly thought out acquisition”. The criticism emerges as the CMA expressed serious concerns about reduced competition and potential cost increases across four UK towns.

The controversial deal, completed in August, involved Topps Tiles purchasing CTD Tiles’ brands, 30 retail locations, and partial stock from administration for £9 million. MS Galleon maintains the retailer significantly overpaid and failed to conduct proper due diligence.

Piotr Lipko, MS Galleon’s managing director, emphasised the need for strategic repositioning, stating: “We have repeatedly raised concerns about the strategic rationale and unreasonably high valuation. The company should focus on modernising its omni-channel customer proposition and improving digital offerings whilst expediting CEO Rob Parker’s succession plan.”

The CMA’s initial investigation identified competition issues in Inverness, Aberdeen, Dorking and Edinburgh, suggesting local traders and renovators could face deteriorating services and deals. Topps Tiles must present solutions to these concerns by 24 February to avoid a more comprehensive investigation.

The retailer’s share price has dropped approximately 20 per cent over the past year. Rob Parker, who has led the company since 2019, announced his departure last month following sustained pressure from MS Galleon. His successor is expected to be named later this year.

Despite the criticism, Topps Tiles maintains that the CMA found no issues with 26 of the 30 acquired locations and the commercial tile operations. The company’s shares showed resilience, rising 1.7 per cent to 35½p during Monday’s trading session.