H&M Founding Family Builds Stake as Turnaround Struggles
Ramsbury Invest bought 36.8 million shares this year as the family’s ownership climbed, fueling speculation of a future buyout.
- The Persson family increased its stake in H&M to more than 68%, fueling widespread market speculation that the founding family intends to take the fast-fashion retailer private.
- CEO Daniel Erver's turnaround efforts have yet to reignite growth, as sales fell 1% in the first quarter and the stock lost more than 50% of its value since 2015 amid intensifying competition from ultra-cheap retailers Shein and Zara owner Inditex.
- Ramsbury Invest, primarily owned by Stefan Persson, purchased additional shares this year; a spokesperson declined to comment on privatization plans, saying, "The Persson family believes in the company, are long-term owners and have historically increased their ownership over time."
- Sverre Linton, chief legal officer of the Swedish Shareholders' Association representing small shareholders, called the move "Sweden's slowest buyout," stating, "It is very difficult to view it any other way than that their strategy is to slowly buy out the company."
- Deutsche Bank analyst Adam Cochrane expects the family to take H&M private by 2030, while Cicero Fonder's Peter Magnusson suggested the family may prefer operating outside market scrutiny to pursue long-term strategies.
13 Articles
13 Articles
H&M founding family builds stake as turnaround struggles to gain traction
The billionaire family behind H&M is quietly increasing its participation in the company, feeding speculation that it could close the capital of the fashion retailer. The recovery efforts led by the director-president, Daniel Erver, have so far failed to boost shares or significantly raise sales. The holding company Ramsbury Invest, of the Persson family, mainly controlled by Stefan Persson, the richest person in Sweden, bought 36.8 million H&M …
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H&M Founding Family Expands Ownership as Retailer Struggles to Revive Growth
The Persson family, which founded H&M, has continued increasing its stake in the Swedish fashion retailer as the company faces weak sales growth and fierce competition from Shein and Zara. The family and related entities owned more than 68% of H&M at the end of August, up from 49.5% at the start of 2021.
H&M founding family builds stake as turnaround struggles
The billionaire family behind H&M is quietly increasing its stake, fuelling speculation it could take the fast-fashion retailer private as CEO Daniel Erver's turnaround efforts have so far failed to boost the shares or lift sales significantly.
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ZUU onlineSpeculation arises that the Persson family may take H&M private, while luxury stocks fail to rise despite the extension of the tariff truce | SVT Global, September 25
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