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THG plc

THG plc, an initialism of its original name The Hut Group, is a global retailer and brand owner, headquartered in Manchester, England, operating through two predominantly online consumer businesses: THG Beauty and THG Nutrition.

In January 2025, THG plc demerged its technology and logistics arm, THG Ingenuity, into a privately owned, stand-alone business.[5] It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.[6]

History

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.[7] It operated a warehouse in Guernsey, allowing customers to avoid paying VAT on items priced below £18.[8][9][10]

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.[7]

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.[11] BlackRock invested £138 million in February 2016, and Sofina announced an undisclosed equity stake in May 2016.[12][13] In August 2017, Sky News reported that Old Mutual Global Investors had made their first private equity investment in The Hut Group.[14][15] 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.[16][17][18]

On 16 September 2020, THG floated on the London Stock Exchange, the largest IPO on the LSE since 2013.[19] 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.[20] After the flotation, Moulding received one of the biggest payouts in UK corporate history of at least £830m in shares.[21]

However, by early October 2021, THG's share price had fallen by more than 60% since the start of the year.[22] 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.[23]

Following criticism of the company's governance arrangements, Charles Allen replaced Moulding as chairman in March 2022, with Moulding remaining CEO.[24]

In July 2023, THG confirmed the sale of its OnDemand division to the existing leadership team, with financial backing from investment firm Gordon Brothers.[25] The division included the webstores IWOOT, My Geek Box, Pop In A Box, Very Neko and Zavvi.[26] 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 THG Ingenuity.[25] Arrow Films was retained by THG and moved into THG Ingenuity.[27]

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.[28]

In January 2025, Ingenuity demerged from THG plc into a privately owned, stand-alone business.[5]

Products and services

Beauty

THG Beauty sells own-brand and third party cosmetics, including skincare, haircare, makeup and fragrances.[26]

It both owns brands (Ameliorate, Biossance, Christophe Robin, ESPA, Grow Gorgeous, and Perricone MD) and its own web stores (Lookfantastic, Cult Beauty, and Dermstore). 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.[26]

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.[26]

Nutrition

THG Nutrition is a retailer of sports nutrition supplements and health and wellness products, led by the world's largest online sports nutrition brand, Myprotein. It also includes supplements brand, Myvitamins and activewear brand, MP Activewear. 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.[26]

Facilities and locations

THG's head office is at the purpose-built ICON Technology Campus at Manchester Airport which opened in 2021.[29]

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.[30][31]

Acquisitions

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 the e-commerce platform, THG Ingenuity.

Controversies

Litigation

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.[77][78]

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.[79]

Cookson and the Trust appealed the court's decision to award The Hut Groups damages.[80] The court of appeal dismissed the appeal on 22 March 2016.[81]

Property ownership

In January 2021, investors raised questions over the company's property deal with its CEO and co-founder, Matt Moulding.[82] Moulding sold himself many of the company's property assets, which he then is reported to rent back to THG for £19m annually.[83][82] In November 2024, it was reported that Moulding had sold the ICON campus, the site of THG's headquarters.[84]

References

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  6. Ocean Wilsons (UK): Constituent Deletion - Changes in FTSE UK Index Series FTSE Russell, 19 September 2025, retrieved 23 September 2025^
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