DFS founder makes MBO approach
Kirkham family stake may go on the market
March 4 2004
Furniture retailer DFS look set to joint the procession of UK retailers exiting the stock market after founder and executive chairman Graham Kirkham said he had approached the company with a potential 415p-a-share offer.
DFS said it has formed an independent committee of the board to consider the proposal in more detail.
Kirkham also indicated that he would consider selling his family’s 9.5 per cent stake in DFS at the right price, but insisted he had not gone public with the offer simply to flush out potential buyers.
As the UK furniture market gets more competitive, with major retailers such as Marks & Spencer, Argos and Next fighting to grow for their share, DFS faces new challenges.
Kirkham told news agency Reuters: “I do not believe this is temporary, but represents a structural change. As the UK’s number one upholstery retailer, DFS is more affected than others.
“DFS would be better able to deal with these conditions as a private company, free from the need to continue to deliver consistent growth in sales, earnings and dividends.”
Deaprtment store groups, Selfridges, Allders and Debenhams all moved into private ownership during 2003, while entrepreneur Philip Green took the Arcadia fashion chain private at the end of 2002.
