Since 2016, H&M’s founding Person family has significantly increased its stake in the fashion retailer, spending over 63 billion kronor ($6.6 billion) to boost its ownership to nearly two-thirds. This move has sparked speculation about a potential plan to take the Stockholm-based company private—rumors the family continues to deny.
Through its investment firm, Ramsbury Invest, the Perssons, one of Sweden’s wealthiest families, have quietly accumulated shares, now controlling nearly 70% of the capital and about 85% of the voting rights, according to H&M’s own disclosures. The company was founded in 1947 by Erling Persson, and his descendants have continued to lead it, with grandson Karl-Johan Persson currently serving as chairman.
Despite Karl-Johan’s public statements claiming there are no plans for a buyout, market observers and shareholder representatives remain unconvinced. Sverre Linton of the Swedish Shareholders’ Association argues that the family’s silence and continued share purchases only reinforce speculation and calls for more transparency.
Over the past nine years, the Perssons’ stake has risen from 35.5% to nearly 64%, primarily through reinvested dividends. Ramsbury Invest, named after Stefan Persson’s 19,000-acre estate in southern England, has been central to this effort.
Stefan Persson, who transformed H&M into a global giant during his time as CEO and chairman, remains deeply tied to the company’s future. His wealth, mostly in H&M shares, makes him Sweden’s richest person.
Some analysts, like Niklas Ekman at DNB Carnegie, believe a buyout is possible within two years if current buying trends continue. If the Perssons’ holding hits 90%, they could move to delist the stock. Ekman believes such a move would be driven more by sentiment than financial logic, noting the family already exerts full control and hasn’t prioritized minority shareholders.
Despite repeated denials, the family’s increased stake comes at a time when H&M faces growing challenges. The company has lost ground to competitors like Zara and ultra-fast fashion platforms such as Shein.
H&M’s stock has fallen by about 60% since peaking a decade ago, while Inditex (Zara’s parent company) has surged 60% in the same period. This drop in valuation could make a buyout more financially feasible, though it might require the family to incur significant debt—estimated at 70 billion kronor—to acquire remaining shares.
Bloomberg Intelligence’s Charles Allen noted that debt-financing such a move could constrain the company’s operational flexibility, whether the debt sits on the family’s books or H&M’s. The company is already grappling with sluggish sales, operational challenges, and soft first-quarter results despite increased marketing efforts.
CEO Daniel Erver, a company veteran who stepped into the role in early 2024, has yet to reverse market share losses in key markets like Germany, France, and the UK. Even celebrity collaborations aimed at younger consumers haven’t delivered the hoped-for boost.
According to Danske Bank analyst Mads Lindegaard Rosendal, buying out the company while the stock is still depressed could be cheaper in the long run. Still, uncertainty over a potential take-private is one reason Danske maintains an ‘underweight’ rating on the stock.
H&M is also among the most shorted stocks in Europe, with 21% of its free float on loan. A buyout could trigger a short squeeze, rapidly driving up the share price.
The company has faced criticism for its opaque corporate governance, including limited disclosure of executive shareholdings—unusual among companies in Stockholm’s benchmark index.
Anders Oscarsson of AMF, Sweden’s largest pension fund and H&M’s biggest non-family shareholder, voiced concern over the potential delisting. “It would be a major loss for the stock market if H&M were to go private,” he said. “We need strong companies to remain listed to ensure solid returns.”
He added that if liquidity in H&M stock continues to drop due to the family’s purchases, investors could be left in a bind. “It could become like Hotel California—you can check in, but you can’t check out.”
