Topps Tiles PLC (LSE:TPT) chief executive Rob Parker has handed in his notice after eighteen years working for the floorings retailer, a move that was welcomed by its major shareholder Galleon.
In November, the Austrian investor published an open letter to Topps' chairman Paul Forman about a "continued lack of engagement and willingness to listen to our concerns".
Galleon, which owns almost a 30% stake, says it welcomes the decision to initiate a CEO succession process.
Managing director Piotr Lipko said the change of leadership "is a positive first step and we look forward to working with them in identifying an appropriate candidate to lead Topps Tiles".
MS Galleon, which has €7 billion in assets under management, first invested in Topps in 2020.
Parker has been CEO since 2019 having previously been its finance head.
No firm date has been set for his leaving but, in a statement, Topps said it would likely be towards the end of 2025 with the search for a replacement already underway.
Paul Forman added: "Rob has made an enormous contribution to the development and success of the business over the last 18 years.
“During his time as CEO, he has overseen a period of significant diversification and growth of the business, and has led the Group through a particularly volatile period for the UK economy, including the Covid pandemic.”
Parker’s announcement comes at a time when the fortunes of the retailer seem to be on the up again after some tough years despite the gloomy economic backdrop.
Group sales in the 13 weeks ended 28 December were 4.6% higher year-on-year, excluding recent acquisition CTD, with sales in the most recent five-week period up 12.9%.
Like-for-like sales in Topps Tiles were up 3.5% year-on-year in the 13 weeks ended 28 December 2024 and up 12.5% in the most recent five-week period.
Parker added: “Whilst it is early in the financial year and macroeconomic indicators remain mixed, we are pleased that our growth strategy is delivering strong results.”
Shares rose by 2.7% to 38.2p.
-- adds comment from MS Galleon --