Dunelm founder revealed as major investor in M&S stake

One of the founders of the homeware retailer Dunelm has been revealed as a major shareholder in rival Marks & Spencer.

Bill Adderley increased his shareholding in M&S to just over 3 per cent, triggering a stock market announcement yesterday revealing his investment.

It is understood the businessman, whose family is worth an estimated £700m, has been an M&S shareholder for at least 18 months and has slowly increased his stake over that time. Shares in M&S closed up 2 per cent, valuing his stake at £244m, on a possible show of support by the respected retailer.

Mr Adderley's decision to lift his stake to 48.5 million shares, worth £244m, comes less than a week before the company reveals how trading has been on its all-important autumn/winter collection.

The chief executive Marc Bolland will be hoping to relieve the pressure on his position by avoiding a ninth consecutive quarterly fall in non-food sales.

Early indications suggest there may be a slight fall in womenswear and homeware sales, according to analysts, with warm weather turning shoppers off buying winter wardrobes, and supply problems on the website.

Mr Adderley founded Dunelm from a market stall in Leicester in 1979 with his wife Jean. Their son William took the reins in 1996 but stepped down as chief executive three years ago, moving into the newly created role of deputy chairman.

The company now has 126 stores and recently reported profits up 12.3 per cent to £109.1m.

Click here for Dunelm voucher codes