An activist fund manager has reportedly been building a stake in struggling bootmaker Dr Martens.
Sparta Capital has bought stock worth “tens of millions of pounds” in the London-listed footwear brand, according to reports by Sky News.
It is said that Sparta is also engaging in talks with the board to help the brand as it struggles following a number of financial setbacks.
City sources said that Sparta was now a top 10 shareholder in the footwear brand, the outlet also said.
Dr Martens has seen its value drop following its initial public offering some two-and-a-half years ago.
It’s been a tough year for the brand as it has been battling bottleneck issues in its Los Angeles warehouse, which impacted its American wholesale channel from December.
The supply chain issues saw the cult bootmaker post an underwhelming update in April, with fourth quarter revenues up just six per cent.
Dr Martens shares have fallen 62 per cent compared to the IPO price when it launched onto the London market in January 2021.
It also recently launched a share buy back programme of up to £50m in efforts to retain earnings following a 26 per cent slide in pretax profits.
“We engage with all our shareholders on a frequent basis and met with Sparta as part of the regular roadshow after our full-year results,” a Dr Martens spokesperson told the outlet.
City A.M. has contacted Dr Martens and Sparta for a comment.