H&M founding family builds stake as turnaround struggles to gain traction

The billionaires behind clothing retailer H&M have been gradually increasing their ownership stake, leading to speculation about a potential takeover. The Persson family, who founded H&M, owns more than 68% of the company, up from 49.5% at the start of 2021. CEO Daniel Erver has been tasked with turning the struggling fast-fashion brand around, but sales have remained flat and the stock price has dropped more than 50% since 2015.

With no significant turnaround in sight, minority shareholders believe the family may be planning a private acquisition. Under Swedish law, a majority shareholder could compel the purchase of the remaining shares if they hold 90%. Analysts predict the Perssons could take H&M private by 2030.