(Reuters) -Shares in Britain’s Dr Martens were trading up about 5% after Sky News reported that activist fund manager Sparta Capital had accumulated stock worth tens of millions of pounds in the bootmaker.
The report said that Sparta, launched by Franck Tuil, a former Elliott Management executive, has been engaging with the company’s board in an attempt to improve its financial and operating performance.
Shares in Dr Martens, which have fallen almost 68% since listing in 2021, were trading at 152.3 pence, as of 0825 GMT, the second-highest gainer on London’s midcap index.
“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 spokesperson for Dr Martens said in an email.
Sparta did not immediately respond to a request for comment on the Sky report.
Dr Martens, whose work boots have been fashionable since the 1960s, has been struggling with waning demand in the U.S. – the second-largest and toughest market for the firm – as consumers cut back on discretionary spending amid high inflation.
The U.S. market will continue to weigh on its profit margins, the bootmaker said in June.
(Reporting by Radhika Anilkumar in Bengaluru; Editing by Sonia Cheema and Kevin Liffey)
