THG plc

The company was founded in Manchester in 2004 with a £500,000 investment by Matt Moulding and John Gallemore. The company sold CDs and DVDs online before creating white-label web stores for large physical retailers, including Asda, Argos Entertainment, Tesco and WHSmith.{{cite web |url=https://omr.com/en/daily/the-inside-story-of-the-hut-group-and-how-it-reached-a-usd-6b-valuation/|title=The inside story of "The Hut Group" and how it reached a USD-6b valuation |last1=Gardt |first1=Martin |last2=Peterson | first2=Scott |date=23 September 2020 |website=OMR |access-date=26 September 2022}} It operated a warehouse in Guernsey, allowing customers to avoid paying VAT on items priced below £18.{{cite web |last1=Reed |first1=Kevin |title=Hut Group flotation still on despite government's VAT plans |url=https://www.accountancyage.com/2011/05/16/hut-group-flotation-still-on-despite-governments-vat-plans/ |website=Accountancy Age |access-date=13 November 2022 |date=16 May 2011}}{{cite web |last1=Goldfingle |first1=Gemma |title=The Hut will retain Channel Islands base despite VAT loophole closure |url=https://www.retail-week.com/the-hut-will-retain-channel-islands-base-despite-vat-loophole-closure/5031084.article |website=Retail Week |access-date=13 November 2022 |language=en |date=11 November 2011}}{{cite web |last1=Bowers |first1=Simon |title=The Hut avoids VAT by shipping via US |url=https://www.theguardian.com/business/2012/nov/16/hut-avoid-vat-shipping-via-us |website=The Guardian |access-date=13 November 2022 |language=en |date=16 November 2012}}

The creation of the iPhone in 2007 undermined this business model and The Hut Group began acquiring internet retailers and moving them into the group's existing systems and warehouses. The company purchased Zavvi in 2009, Lookfantastic in 2010 and Myprotein in 2011. The group focused on beauty and lifestyle products because of the large margins and potential for international scaling.

Investors included Terry Leahy, a former chief executive of Tesco, and Stuart Rose, the chairman of Ocado. In 2014, the company sold a 19.2% stake to KKR, while Balderton Capital, a technology investor, held an identical stake.{{cite web|url=http://news.sky.com/story/1647255/hut-group-grows-beauty-arm-with-canadian-deal|title= Hut Group Grows Beauty Arm With Canadian Deal |date=23 February 2016|publisher=Sky News|accessdate=18 April 2016}} BlackRock invested £138 million in February 2016, and Sofina announced an undisclosed equity stake in May 2016.{{cite web|url=http://www.retail-week.com/sectors/health-and-beauty/the-hut-group-secures-extra-funding-as-sales-and-profits-jump/7004859.fullarticle |title=The Hut Group secures extra funding as sales and profits jump|date= 16 February 2016|publisher=Retail Week|accessdate=18 April 2016}}{{cite web|url=https://www.drapersonline.com/news/the-hut-group-lands-138m-investment/7004858.article|title=The Hut Group lands £138m investment|date=16 February 2016|publisher=Drapers online|accessdate=29 January 2017}} In August 2017, Sky News reported that Old Mutual Global Investors had made their first private equity investment in The Hut Group.{{cite web|url=https://www.manchestereveningnews.co.uk/business/business-news/hut-group-to-sell-125m-13475487|title=The Hut Group 'to sell £125m stake' which could see the company valued at £2.5bn|date=14 August 2017|publisher=Manchester Evening News|accessdate=23 January 2018}}{{cite web|url=https://news.sky.com/story/hut-group-hits-25bn-valuation-with-125m-old-mutual-investment-10984629|title=Hut Group hits £2.5Bn valuation with £125M Old Mutual Investment|date=13 August 2017|publisher=Sky News Online|accessdate=23 January 2018}} In 2017, The Hut Group was valued at more than £2.5 billion making it one of the most valuable private companies in the United Kingdom, and one of the UK's unicorn companies.{{Cite web|url=https://news.sky.com/story/hut-group-hits-2-5bn-valuation-with-125m-old-mutual-investment-10984629|title=Hut Group hits £2.5bn valuation with £125m Old Mutual investment|website=Sky News}}{{Cite web|url=https://technation.io/insights/northern-tech-100-league-table-2017/|title=Northern Tech 100 League Table 2017 - Reports|website=Tech Nation}}{{Cite web|url=https://www.forbes.com/sites/davidprosser/2019/01/11/billion-dollar-britain-13-unicorns-from-the-uk/|title=Billion Dollar Britain: 13 Unicorns From the UK|first=David|last=Prosser|website=Forbes}}

On 16 September 2020, THG floated on the London Stock Exchange, the largest IPO on the LSE since 2013.{{Cite news|last1=Jolly|first1=Jasper|last2=Butler|first2=Sarah|date=2020-09-16|title=Hut Group shares jump in value by quarter on first stock market day|language=en-GB|work=The Guardian|url=https://www.theguardian.com/business/2020/sep/16/hut-group-shares-jump-in-value-by-quarter-on-first-stock-market-day|access-date=2020-09-16|issn=0261-3077}} The share price rose in value by 25% on the first day of trading, generating £920m for the company and £961m for the company's owners.{{Cite web|date=2020-09-16|title=Hut Group shares jump in value by quarter on first stock market day|url=http://www.theguardian.com/business/2020/sep/16/hut-group-shares-jump-in-value-by-quarter-on-first-stock-market-day|access-date=2021-10-14|website=the Guardian|language=en}} After the flotation, Moulding received one of the biggest payouts in UK corporate history of at least £830m in shares.{{Cite web|date=2020-11-15|title=Hut Group CEO to get £830m in shares in one of UK's biggest payouts|url=http://www.theguardian.com/business/2020/nov/15/hut-group-ceo-to-receive-one-of-uk-biggest-payouts-after-share-price-rise|access-date=2021-10-14|website=the Guardian|language=en}}

However, by early October 2021, THG's share price had fallen by more than 60% since the start of the year.{{Cite web|date=2021-10-11|title=Britain's online pandemic winners losing their lustre|url=https://www.theguardian.com/business/2021/oct/11/britains-online-pandemic-winners-losing-their-lustre|access-date=2021-10-14|website=the Guardian|language=en}} On 12 October 2021, the company held a capital markets day to unveil its sustainability strategy with investors. Afterwards, shares fell by 35%, wiping £1.8 billion off THG's value.{{Cite web|last=Williams-Grut|first=Joanna Bourke, Oscar|date=2021-10-13|title=THG fights back after 35% plunge in share price as Numis slashes target price|url=https://www.standard.co.uk/business/thg-responds-plunge-share-price-the-hut-group-b960198.html|access-date=2021-10-14|website=www.standard.co.uk|language=en}}

Following criticism of the company's governance arrangements, Charles Allen replaced Moulding as chairman in March 2022, with Moulding remaining CEO.{{Cite web|title=THG hires ex-ITV boss Lord Allen as first external chairman in push to repair relations with the City|url=https://www.standard.co.uk/business/thg-lord-chalres-allen-chair-matt-moulding-b989745.html|date=22 March 2022|access-date=2 October 2022|website=Evening Standard}}

In July 2023, THG confirmed the sale of the OnDemand division to its existing leadership team, with financial backing from investment firm Gordon Brothers.{{Cite web |date=July 21, 2023 | access-date=21 July 2023 |title=THG sells OnDemand division to management |url=https://www.retailgazette.co.uk/blog/2023/07/thg-ondemand-division/ |website=Retail Gazette}} The division included the webstores IWOOT, My Geek Box, Pop In A Box, Very Neko and Zavvi. ProBikeKit was sold separately to Frasers Group in the second quarter of 2023. The sales generated £4 million and THG announced that both would continue as clients of Ingenuity. Arrow Films was retained by THG and moved into the Ingenuity division.

In June 2024, it was announced that THG had sold its Luxury division, including the designer clothing, accessories and homeware web stores, Allsole, Coggles, MyBag and The Hut, to Frasers Group.{{cite news |last=Jolly |first=Jasper |date=24 June 2024 |title=Frasers buys THG's Coggles website as they unveil partnership deal |url=https://www.theguardian.com/business/article/2024/jun/24/frasers-buys-thg-websites-sports-direct-coggles |work=The Guardian |location= |access-date=25 August 2024}}

In January 2025, Ingenuity demerged from THG plc into a separately owned stand alone business.

THG Beauty sells own-brand and third party cosmetics, including skincare, haircare, makeup and fragrances.

It both owns brands (Ameliorate, Biossance, Christophe Robin, ESPA, Eyeko, Grow Gorgeous, Illamasqua, Mio and Perricone MD) and its own web stores (Beauty Expert, Cult Beauty, Dermstore, HQhair, Lookfantastic, Mankind, RY, SkinCareRx and SkinStore). Each web store is localised to different territories, including localised pricing, promotions, content, marketing, influencers, customer service, couriers and payment options. It offers three subscription services through Lookfantastic, Dermstore, and Glossybox which are designed to introduce consumers to new THG products.

The division has its own product development and manufacturing facilities (THG Labs in the UK and Bentley Laboratories in the USA) for both own-brands and third parties.

The smaller Experience section also reports under the Beauty division. THG Experience consists of three event spaces (King Street Townhouse Hotel, Great John Street Hotel, and Hale Country Club & Spa) for hosting influencer and brand events.

Ingenuity is a service targeted at consumer brand owners seeking to expand or transition from physical retail stores into direct-to-consumer e-commerce in one or more territories.

In January 2025, Ingenuity demerged from THG plc into a separately owned stand alone business.

As of 2023, Ingenuity customers included Coca-Cola Europacific, Nestlé, Kraft Heinz, Homebase and Matalan.{{Cite web|url=https://www.thgingenuity.com/resources/case-studies/homebase |title= Homebase Casestudy - THG Ingenuity |website=THG Ingenuity |access-date=30 September 2022}}

Myprotein is a bodybuilding supplement brand which has developed into a family of brands; Myvitamins, Myvegan, MyPRO and MP Activewear. Command and BeNu launched in 2021 targeting the nootropics and meal replacement markets respectively. THG also owns Exante, a weight loss brand formerly called IdealShape.

Like the Beauty division, THG Nutrition is vertically integrated with its own localised web stores, product development and manufacturing facilities which also service third parties.

THG's head office is at the purpose built ICON Technology Campus at Manchester Airport which opened in 2021. THG Studios, the group's content creation unit, is also based there as well as offices and an automated warehouse which uses technology from AutoStore, a Norwegian robot technology company.{{Cite web |url=https://www.thgstudios.com/ |title=THG Studios |website=THG Studios |access-date=30 September 2022}}

In 2020, THG exchanged contracts to build a new 1m sq ft global headquarters at Airport City Manchester to be called THQ. It was due for completion in 2022 but work had not yet begun by October 2022.{{Cite web |url=https://www.thg.com/news/pivotal-contract-exchanged-for-thq/ |title= Pivotal Contract Exchanged for The Hut Group's Landmark 'THQ' Business Campus at Airport City Manchester |website=THG plc |date=14 February 2020| access-date=4 October 2022}}{{Cite web |url=https://www.placenorthwest.co.uk/the-subplot-thg-campus-mystery-manchester-resi-btr/ |title=The Subplot - THG campus mystery, Manchester resi, BTR |website=Place North West |date=27 October 2022| access-date=12 November 2022}}

As of 2023, THG operates 13 fulfilment centres and 9 production facilities globally.{{cite web |access-date=21 July 2023 |title=THG Divisions - Ingenuity |website=THG plc |url=https://www.thg.com/divisions/ingenuity}} THG Ingenuity Cloud Services also operates over 35 data centres worldwide.{{Cite web |url=https://www.ingenuitycloudservices.com/ |title=THG Ingenuity Cloud Services |website=THG Ingenuity Cloud Services |access-date=21 July 2023}}

THG has pursued an acquisition strategy of mainly taking full ownership of e-commerce businesses in a variety of retail sectors and putting the websites onto its proprietary e-commerce platform, Ingenuity.

In 2014, The Hut Group sued Oliver Cookson for £15 million, alleging that he and his off-shore trust had overstated the profits of Myprotein prior to its acquisition by The Hut Group in 2011. Cookson counter sued for £12.7 million claiming a breach of warranty and fraudulent misrepresentation. The matter went to the High Court in London in October 2014 and, after a month-long trial, judgement was given by William Blair in November 2014 awarding Cookson an overall net result win of £6.5m in damages.[http://www.bailii.org/ew/cases/EWHC/QB/2014/3842.html "The judgment by The Hon Mr Justice Blair - The Hut Group Ltd v Cookson", England and Wales High Court (Queen's Bench Division) Decisions, 20 November 2014].[http://www.thebusinessdesk.com/northwest/news/696115-cookson-and-the-hut-both-claim-victory-after-high-court-row.html "Business Desk article - 21 November 2014]

At the costs hearing in December 2014, the judge awarded a payment of just under £7.5 million to be made by The Hut Group to Cookson and the Trust in respect of all of the claims and counterclaims in the action and one third of the costs incurred by Cookson and the Trust.[https://www.dwf.law/MediaCentre/Press-Releases/2015/February/17-feb---Costs-awarded-in-the-Hut-Group-Ltd-v-Oliver-Cookson-Barclays-Private-Bank-Trust-Ltd "Costs awarded in The Hut Group vs Oliver Cookson & Barclays Private Bank & Trust Ltd - Press Release by DWF]

Cookson and the Trust appealed the court's decision to award The Hut Groups damages.{{cite web|url=https://www.dwf.law/MediaCentre/Press-Releases/2015/February/Permission-to-appeal-granted-in-High-Court-case-between-The-Hut-Group-Ltd-and-Oliver-Cookson-and-oth|title=Permission to appeal granted in High Court case between The Hut Group Ltd and Oliver Cookson and others|work=DWF.LAW|accessdate=17 April 2016}} The court of appeal dismissed the appeal on 22 March 2016.{{cite web|url=http://www.thebusinessdesk.com/northwest/news/732809-the-hut-sucessfully-defends-appeal-by-cookson.html|title=Deals/Restructuring / Deals List / The Hut successfully defends court appeal by Cookson - TheBusinessDesk.com|publisher=|accessdate=17 April 2016}}

In January 2021, investors raised questions over the company's property deal with its CEO and co-founder, Matt Moulding.{{Cite web|date=2021-01-11|title=Questions raised over The Hut Group boss's landlord role|url=http://www.theguardian.com/business/2021/jan/11/questions-raised-over-the-hut-group-bosss-landlord-role|access-date=2021-10-14|website=the Guardian|language=en}} Moulding sold himself many of the company's property assets, which he then is reported to rent back to THG for £19m annually.{{Cite news|last=Powell|first=Jamie|date=2021-10-13|title=The cost of THG and Matt Moulding's cashless property deal|work=Financial Times|url=https://www.ft.com/content/63668713-c1b1-49e9-9108-800bd9c79e97|access-date=2021-10-14}} In July 2023, it was reported that Moulding would sell the ICON campus, the site of THG's headquarters.{{Cite web|date=5 July 2023|title=THG CEO Moulding to sell firm's headquarters|url=https://www.retailgazette.co.uk/blog/2023/07/thg-sale-headquarters/|access-date=21 July 2023|website=Retail Gazette}}

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{{FTSE 250 Index constituents}}

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Category:Online retailers of the United Kingdom

Category:Companies based in Manchester

Category:Retail companies established in 2004

Category:British companies established in 2004

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