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The founding Persson family, which is among Sweden’s richest, since 2016 has spent over US$6.6 billion to secure nearly two-thirds ownership in the company, sparking speculation about a potential return to private control despite family denials, Bloomberg reported.

The Perssons have increased their stake through Ramsbury Invest, offering minimal insight beyond stating they “believe” in H&M.

They, however, have denied that they are taking back private ownership in the firm. Their gradual share purchase has raised questions among minority shareholders.

Sverre Linton, chief legal officer and spokesperson for the Swedish Shareholders’ Association, representing small investors, said: “This is something we’ve been talking about for years, and few would doubt that’s the direction things are headed.”

He suggested that if the family has no intention of taking H&M private, they should clarify this and halt share purchases.

Through reinvested dividends, the family has boosted its H&M stake from 35.5% to nearly 64% over nine years via Ramsbury.

Including extended family holdings, the Perssons control about 70% of the capital and roughly 85% of voting rights, per H&M’s website.

In a Bloomberg interview last year, H&M Chairman Karl-Johan Persson, the founder’s grandson, rejected privatization rumors, stating, “There are no plans. We just buy because we believe in the company.”

H&M has been struggling to compete major players such as Zara and “ultra-fast fashion” competitors like Shein.

Last year the Swedish fashion giant, which has been established for nearly 80 years, scrapped its margin target for 2024 as higher discounting, costs and fierce competition hurt operating profit in the third quarter, Reuters reported.

Analysts like Niklas Ekman at DNB Carnegie suggest the consistent share purchases may indicate more than confidence.

In a recent client note, he estimated a buyout could occur within two years if the family maintains its pace, potentially requesting a delisting upon reaching 90% ownership.

Ekman noted a take-private would likely stem from “emotional rather than financial motives,” as the family already holds control and has historically prioritized its vision over minority shareholders.

This drive is linked to Stefan Persson, 77, who transformed H&M into a global fast-fashion leader during his 16-year tenure as CEO and over two decades as chairman. He remains heavily invested in the company’s future.

Stefan’s $18.6 billion fortune, primarily in H&M stock, makes him Sweden’s wealthiest individual, according to the Bloomberg Billionaires Index.

H&M’s shares, which peaked a decade ago, have since dropped by about 60%, valuing the company at around US$23 billion.