Cracks deepen at Topps Tiles as shareholder slams takeover deal to purchase 30 shops
Topps Tiles’s largest shareholder has slammed the group after regulators said its deal to buy 30 stores from a rival could lead to competition issues.
The flooring company bought the stores for £9million in August last year after CTD Tiles, which was the second largest specialist tile retailer in the UK behind Topps, fell into administration.
The Competition and Markets Authority (CMA) said that after an initial investigation, it found specific competition concerns in four areas of the country – Dorking, Edinburgh, Inverness and Aberdeen – where it believes the deal could lead to worse deals and service for customers.
Leicestershire-based Topps has until February 24 to submit proposals to allay the regulator’s concerns and avoid a potential, more thorough investigation.
The report sparked criticism of Topps by its largest sharehodler MS Galleon, which has a 29.9 per cent stake.
Managing director Piotr Lipko said: ‘We have, on multiple occasions, raised concerns about the strategic rationale for the acquisition of CTD.’ A Topps spokesman said the company ‘will continue to work with the CMA’.
Competition concerns: Topps bought 30 stores for £9m in August last year after rival CTD Tiles fell into administration
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