Newspaper reports over the weekend said Laxey Partners tried to oust Wyevale chairman David Williams at the retailer's AGM at the end of last month, so that it could install its own man, Robert Ware.
Laxey is understood to be critical of the retailer's trading performance and wants Wyevale sell off some of its property to boost revenues. Ware is a former director at property group MEPC.
Laxey, which holds 18.3 per cent of the retailer, is reported to have moved for Williams to step down at the AGM, but the motion was defeated by 61 per cent to 39 per cent.
Seymour Pierce Research head of equities Richard Ratner said that he was alarmed that Laxey appeared to be trying to remove Williams, who he noted was instrumental in turning the retailer around through a strategy of improving standards of visual merchandising and non-horticultural product.
He said: 'These are measures that should have happened long ago, but we believe were held up by the family presence on the board. They have been removed and now we have a dynamic chairman who will ensure the change programme is pushed ahead.'
Ratner doubted Laxey's reported interest in realising the value of Wyevale's property assets would yield the sort of returns the shareholder is thought to expect.
Ratner pointed out that it was unlikely any more than a few of Wyevale's properties would get planning permission for conversion into either food retailing or housing and that the best chance Wyevale had of increasing value was to concentrate on developing larger centres and increasing turnover.
He said: 'The best way of enhancing value is to support the board and the current chairman. Anyone looking for huge hidden property value is, in our view, searching for fool's gold.'
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