Dr. Martens shares plunge to record lows on discount bulk sale via Goldman Sachs

By Louis Goss

Dr. Martens shares fell to record lows on Friday after a consortium of investors sold 70 million shares in the British bootmaker at a 10% discount on its closing share price on Thursday.

Goldman Sachs sold the block in Dr Martens on behalf of a group of institutional investors at a price of 57.85 pence per share, according to a source familiar with the matter.

Dr. Martens (UK:DOCS) shares, listed on the London Stock Exchange, fell 17% on Friday morning to the lowest levels since the Northamptonshire headquartered company's GBP3.7 billion initial public offering in January 2021.

The sell-off saw the coalition of unnamed investors sell a roughly 14% stake in Dr. Martens at a 9.96% discount on its closing share price on Thursday of 64.25 pence per share.

The shoe seller's stock price has fallen by 64% over the previous 12 months following a sharp drop in its U.S. sales, which Dr. Martens has blamed on caution among wholesalers about the state of the American economy.

Dr. Martens' largest shareholder, IngreGrsy, was not involved in the sale, a source close to the transaction told MarketWatch. IngreGrsy is a Jersey headquartered investment firm which is controlled by private equity firm Permira.

IngreGrsy acquired a 38.4% stake in Dr Martens in June this year, via a restructuring inside Permira, which first acquired a stake in the company itself in 2014.

Dr. Martens, which is known for its countercultural cache, was first started in the 1940s by former German soldier Dr. Klaus Maertens, who designed the company's classic rubber soled boots.

Northamptonshire shoemaker R. Griggs Group later bought the rights to make shoes using Dr Maertens' designs in the U.K. in the 1950s, where they were rebranded as Dr. Martens or Docs.

Dr. Martens was contacted by MarketWatch for comment.

-Louis Goss

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09-20-24 0552ET

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