Shares in Shoe Zone PLC (AIM:SHOE), the value footwear retailer, surged 29% to 55p after chairman Charles Smith and Anthony Smith bought nearly 2.76 million shares between them at 50p each, spending a combined £1.38 million.
The purchases lift the Smith family's total holding to 29.62 million shares, or 64.08% of the company's voting rights, up from 58.11% previously.
Charles and Sian Smith now hold 13.16 million shares, representing 28.47% of the company, while Anthony and Catherine Smith hold 16.46 million shares, or 35.61%.
The Takeover Panel has agreed that no mandatory offer obligation under Rule 9 will be triggered by the increase, given the family already held more than 50% and the purchases reflect a close family connection.
The scale of the buying sent a strong signal to a market that has punished the stock heavily over the past year, with shares having fallen 55% against a backdrop of tough trading conditions for the retailer.
At the 50p purchase price, the Smiths were buying at close to the stock's lows, suggesting the founding family sees the current valuation as significantly underestimating the business.
Shoe Zone operates more than 300 stores across the UK, targeting budget-conscious shoppers, but has faced pressure from rising costs, weak consumer confidence and a challenging high street environment.
The insider buying will raise hopes among remaining shareholders that the worst of the trading difficulties may be passing, though the company has yet to issue updated guidance on current performance.