Will LVMH make an offer for Dr. Martens?

British boot maker Dr. Martens is reportedly surrounded by fashion giants including LVMH and VF Corporation after investors demanded a strategic overhaul, leaving the company ‘vulnerable’ to a sale.

Earlier this month, Marathon Partners Equity Management, one of the 30 largest investors in Dr. Martens, youRforced the British shoemakers to hire bankers to begin a strategic review which could lead to a sale of the company.

In a letter addressed to Paul Mason, chairman of Dr. Martens, Mario Cibelli, managing member of Marathon Partners, said a strategic buyer could “add more scale to the business, create new synergies and eliminate unnecessary overhead.”

The brand, that was listed on the London Stock Exchange in January 2021 with a valuation of £3.7bn, it has struggled since then. The blockbuster listing later saw valuations fall 83% since its public listing in 2021.

The company suffered losses after a series of problems in the US, especially at its distribution center in Los Angeles. Last week, Dr. Martens revealed and announced its fifth profit warning in just three years Ije Nwokorie replaced Kenny Wilson as CEO from the company.

With the boot maker struggling as a listed company, a stream of hungry fashion houses have shown interest in a possible takeover, according to The Mail on Sunday. Possible candidates include Louis Vuitton owner LVMH and Timberland owner VF Corporation.

John Stevenson, analyst at Peel Hunt, said: “With the recovery hampered by slower-moving wholesale markets, Dr Martens appears vulnerable to approaches.”