Arora brothers sell off £234m stake in B&M

THE billionaire brothers behind the discount retail chain B&M have sold off a £234m stake in the company, equivalent to a quarter of their total investment.

Luxembourg-based SSA Investments, linked to chief executive Simon Arora and his brother Bobby, who is trading director of B&M, sold around 4pc of B&M’S shares, reducing their holding in the business to 7pc.

The move, which caused shares in B&M to slide by almost 5pc, comes just a day after JD Sports’ executive chairman Peter Cowgill sold his shares in the retailer.

Retail analyst Nick Bubb said the share placings by Mr Cowgill and the Arora brothers “fit the narrative that retailers expect tougher times ahead”.

He said: “Many will have groaned at the overnight news that the Arora family now wants to sell another 40m shares.” It is the second time the brothers have sold a major stake in the business since it listed, offloading £215m worth of shares in 2017. B&M, which was founded in 1978 and sells goods ranging from discounted toothpaste to furniture, has enjoyed soaring popularity since the Arora brothers snapped up the business in 2004.

Last week, it emerged that tens of thousands of B&M workers will get an extra week’s wage after the chain’s “best ever Christmas” prompted a profit upgrade.

Simon Arora insisted that he was “confident in B&M’S prospects for 2022” despite ongoing supply chain disruption, inflationary pressures and uncertainty around Covid.

Analysts said that while there are challenges in the sector, the retailer, which has 1,100 stores, will likely be boosted by its focus on lowcost products which should see it perform well as household spending is squeezed.