- Vivian Hendriksz |
MySale co-founder and chief executive Carl Jackson shared his intentions to purchase up to 3 million pounds worth of shares, leading to a jump in shares from the fashion etailer on Wednesday, after a profit warning hit its majority shareholders earlier this week.
Close to 140 million pounds was cut off the online retailer's brand value after MySale issued a profit warning which said pre-tax profits would be “materially below marketing expectations,” due to challenging trading conditions in its home markets.
Share prices dropped over 60 percent, which left shareholders including Sir Philip Green from Arcadia Group and Mike Ashley will multimillion pound paper losses. Green's Shelton Capital Fund, which is controlled by his Monaco-based wife Tina, held a 22.5 percent stake in MySale, which saw 30 million pounds scrapped of its value.
However Jackson, who currently holds a 34.8 percent stake together with his brother James, is now considering the purchase of company shares equal to nearly 3 percent. MySale, which offers online flash sales on various brands, debut on the junior stock market plunged on listing after a misplaced decimal point listed the shares in pounds rather than pence. News of Jackson's insterest to buy shares lead to share prices creeping back up 3.5 p to 69.5 p on Wednesday.
But in order to aquire the shares, Jackson first needs the support of shareholders holding a 50 percent stake or more under City rules to avoid having to make a full bid for it. Green shared his support of Jackson's intent to purchase the share: “If people stand up and are willing to go into the market and buy shares I think that’s a good signal,” he said to the Guardian.
“We still have confidence in them. Nothing has changed. Dozens of companies have a misstep before going forward.”