Will LVMH make a bid for Dr. Martens?

British bootmaker Dr. Martens is reportedly being circled by fashion giants including LVMH and VF Corporation after investors demanded a strategic review, leaving the business 'vulnerable' to a sale.

Earlier this month, Marathon Partners Equity Management, one of the 30 largest investors in Dr. Martens, urged the British bootmakers to hire bankers to commence a strategic review that could lead to a sale of the company.

In a letter addressed to Dr. Martens board chairman Paul Mason, Mario Cibelli, Marathon Partners' managing member, said a strategic buyer "could add further scale to operations, create new synergies and eliminate unnecessary overhead".

The brand, which was floated on the London Stock Exchange in January 2021 with a £3.7 billion valuation, has since been struggling. The blockbuster listing later saw valuations drop by 83% since its public listing in 2021.

The business suffered losses after a string of issues faced in the US, particularly at its Los Angeles distribution centre. Last week, Dr Martens unveiled its fifth profit warning in just three years and announced that Ije Nwokorie was replacing Kenny Wilson as CEO of the company.

John Stevenson, Analyst at Peel Hunt, told This is Money: "With recovery held back by slower-moving wholesale markets, Dr. Martens looks vulnerable to approaches."

With the bootmaker struggling as a listed company, a flurry of hungry fashion houses have shown interest in a potential takeover, according to The Mail on Sunday. Potential suitors reportedly include Louis Vuitton owner LVMH and Timberland owner VF Corporation.