Tile Shop Holdings Acquires 28.8% Stake in Fund 1 Investments

Fund 1 Investments has acquired a 28.8% stake in Tile Shop Holdings, a specialty retailer of natural stone and man-made tiles in the US. Tile Shop Holdings offers a range of tile products, including natural stone, man-made tile, and accessories. The company also offers delivery service through third-party freight providers and sells products under various brand names.

Fund 1 Investments has acquired a 28.8% stake in Tile Shop Holdings, a specialty retailer of natural stone and man-made tiles in the United States. The acquisition, announced on September 12, 2025, comes as Tile Shop Holdings continues to explore strategic initiatives aimed at optimizing its financial performance.

Tile Shop Holdings, Inc. operates 140 stores across 31 states and the District of Columbia, offering a diverse range of tile products, including natural stone, man-made tile, and accessories. The company also provides delivery services through third-party freight providers and sells products under various brand names such as Superior Adhesives & Chemicals, Superior Tools & Supplies, Rush River, and Fired Earth.

The acquisition by Fund 1 Investments aligns with Tile Shop Holdings' recent efforts to reduce costs and enhance long-term stockholder value. In December 2025, the company plans to delist from the Nasdaq Capital Market and terminate its SEC reporting obligations. This move aims to eliminate the costs associated with being a public company, with anticipated annual savings of approximately $2.4 million. The company expects to use these savings to focus resources on operational improvements and strategic initiatives Tile Shop plans to delist from Nasdaq, go private in cost-saving move^[2].

The acquisition by Fund 1 Investments is a significant development for Tile Shop Holdings, as it provides the company with additional financial backing and strategic support. The company's gross profit margins remain impressive at 65%, and its liquidity is healthy, with a current ratio of 1.53. However, the company has not been profitable over the last twelve months, which has raised investor concerns. The earnings report for the second quarter of 2025 showed a slight increase in revenue but a decrease in earnings per share (EPS) to $0.01, highlighting the market conditions and strategic shifts that may be contributing to these concerns Tile Shop plans to delist from Nasdaq, go private in cost-saving move^[2].

The acquisition by Fund 1 Investments is expected to provide Tile Shop Holdings with the necessary capital and expertise to navigate the challenging market conditions and achieve its long-term growth objectives. For deeper insights into Tile Shop Holdings' financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence Tile Shop plans to delist from Nasdaq, go private in cost-saving move^[2].