Who Owns THG Company?

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Who Really Controls THG?

THG plc, formerly The Hut Group, has captivated the e-commerce world with its direct-to-consumer model. From its Manchester, England, headquarters, THG has built a global empire spanning beauty, nutrition, and its Ingenuity platform. But who truly calls the shots at this retail giant, and how has its ownership evolved since its inception?

This exploration into THG SWOT Analysis will uncover the key players behind the scenes, from the founders to the current THG shareholders. We'll dissect the THG company ownership structure, examining major investment rounds and the impact of its IPO on the THG owner landscape. Understanding Who owns THG is crucial for anyone seeking to navigate the complexities of the e-commerce sector and the future of THG Group.

The foundation of the company, now known as THG, was laid in Manchester in 2004. It was the brainchild of Matthew Moulding and John Gallemore, who started with an initial investment of £500,000. This marked the beginning of what would become a significant player in the online retail sector.

Matthew Moulding, currently serving as the CEO, and John Gallemore, who remains involved in the business, initially focused on an online retail model. Their strategy involved selling small, global products with high gross profit margins, aiming to maximize shareholder value. This early vision set the stage for the company's future growth and strategic direction.

Early on, the company's operations involved selling CDs and DVDs online, along with creating white-label web stores for major retailers like Asda and Tesco. This dual approach helped establish a presence in the market and generate early revenue streams.

Founders and Initial Investment

The company was founded in 2004 in Manchester by Matthew Moulding and John Gallemore. They started with an initial investment of £500,000. This investment was crucial for launching the business and setting its early strategy.

Early Business Model

The initial business model focused on online retail, selling CDs, DVDs, and creating white-label web stores. The founders aimed for high gross profit margins. This strategy helped establish a presence in the market and generate early revenue.

Technology Development

A key decision was to build their own technology platform, moving away from third-party solutions. This in-house development became a core part of the company. This strategic move provided greater control and efficiency.

Early Investors

Early investors included prominent figures such as Terry Leahy and Stuart Rose. These investments provided crucial capital and support. This early backing helped fuel the company's growth.

Key Investments

KKR acquired a 19.2% stake in 2014, followed by BlackRock's £138 million investment in February 2016. Sofina also acquired an undisclosed equity stake in May 2016. These investments supported the company's expansion.

Private Equity Investment

Old Mutual Global Investors made their first private equity investment in August 2017. This investment further solidified the company's financial backing. This investment was a vote of confidence.

Ownership Structure and Key Players

The company's ownership structure has evolved over time, with key investments from various entities. Understanding the evolution of THG company ownership is crucial. Early investments and strategic decisions shaped the company's trajectory.

• Matthew Moulding, as CEO, has a significant stake in the company.
• Early investors included Terry Leahy and Stuart Rose.
• KKR and Balderton Capital held significant stakes.
• BlackRock and Sofina made substantial investments, supporting expansion.

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The ownership structure of THG, also known as The Hut Group, has seen considerable shifts since its inception. The company's initial public offering (IPO) on the London Stock Exchange on September 16, 2020, was a pivotal moment. This IPO raised £920 million for the company and £961 million for existing owners, with a market capitalization of £5.4 billion at the time. This event significantly altered the ownership landscape, introducing a broader base of shareholders. Following the IPO, Matthew Moulding, the co-founder, received a substantial payout.

However, the company's share price experienced a significant decline. By early October 2021, the share price had dropped by over 60%. As of June 11, 2025, the market capitalization stood at £328.20 million. This decline prompted strategic adjustments and further investment from key stakeholders. These changes reflect the dynamic nature of THG's ownership and its response to market conditions.

Key stakeholders in THG include institutional investors and Matthew Moulding. As of March 31, 2025, Moulding's equity interest was approximately 25% on a fully diluted basis. He has consistently invested in the company since the IPO, buying back shares and committing additional funds. Other notable investors include Sofina. The involvement of activist investors and ongoing investments by Moulding highlight efforts to stabilize and enhance the company's strategy and governance. To understand more about the company's financial structure, you can read Revenue Streams & Business Model of THG.

THG Company Ownership: Key Highlights

THG's ownership structure has evolved significantly since its IPO in 2020.

• Matthew Moulding holds a significant equity stake, demonstrating a strong commitment to the company.
• Institutional investors play a crucial role in THG's ownership.
• Activist investor involvement has influenced company strategy and governance.
• The IPO and subsequent investments have shaped the current ownership landscape.

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The current board of directors at THG, also known as THG Group or The Hut Group, includes Charles Allen as chairman and Matthew Moulding as CEO. Charles Allen took over as chairman from Moulding in March 2022. This change followed scrutiny of the company's governance practices, with Moulding remaining in his role as CEO. Understanding the structure of THG company ownership is crucial for investors and stakeholders.

Historically, Matthew Moulding held a 'golden share' that gave him considerable control, including the ability to block any takeover bids. This arrangement, along with his dual role as CEO and chairman, created governance concerns. It also prevented THG from being included in FTSE indices. Moulding relinquished this golden share in June 2023, addressing investor concerns and paving the way for a premium listing on the London Stock Exchange.

As of March 31, 2025, the total voting rights in THG were 1,390,694,730, with ordinary shares carrying one vote each. This is an increase from 1,322,058,529 as of December 31, 2024. The company does not hold any treasury shares. In May 2024, an activist investor, Kelso, called for the removal of Chairman Lord Charles Allen, citing a 'lack of action and clarity' on strategies to improve share value. However, Kelso's ownership of approximately 0.4% (5.5 million shares out of 1.33 billion) suggested that Lord Allen's position was secure. For more insights, explore the Target Market of THG.

Key Takeaways on THG Ownership

The governance structure of THG has evolved, with changes in leadership and the relinquishing of the golden share. The voting rights are concentrated in ordinary shares, influencing THG shareholders. Understanding the ownership structure is vital for anyone interested in THG company ownership.

• Charles Allen is the current chairman.
• Matthew Moulding remains the CEO.
• The golden share was eliminated in June 2023.
• Total voting rights were 1,390,694,730 as of March 31, 2025.

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Over the past few years, the ownership structure of THG has seen significant shifts. In January 2025, THG demerged its technology and logistics arm, Ingenuity. This move was supported by a £10 million investment from Matthew Moulding. Subsequently, in March 2025, THG raised £90 million through a share and convertible loan issue, with £60 million coming from Moulding, increasing his stake. This capital injection aimed to streamline the company's debt and position it for future growth.

Further impacting the ownership landscape, THG has undertaken strategic divestments. The OnDemand division, including webstores like Zavvi, was sold in July 2023. In June 2024, the Luxury division, which included web stores like Allsole and Coggles, was sold to Frasers Group. Despite these efforts, the company has faced challenges, including a sustained decline in its share price. The company's share price has dropped significantly since its IPO.

These developments highlight the evolving ownership dynamics and strategic adjustments within THG. The company's efforts to restructure and adapt to market conditions are evident through its demergers, fundraising activities, and asset sales. A brief history of THG provides additional context on the company's journey and ownership evolution.

THG Owner's Investment

Matthew Moulding's total share purchases in THG have reached £110 million since the IPO. His investments reflect a commitment to the company's future.

Financial Performance

The company reported operating losses of £147.9 million in 2024. THG has also cut 2,500 jobs since early 2022, as part of its operational efficiency review.

Share Price Impact

The share price decline led to THG's removal from the FTSE 250 index. The market value plunged to £328.75 million—a 97% drop since its IPO peak.

Debt Reduction

The fundraise aims to simplify the company's debt structure and position it for future growth, lowering the group's leverage ratio from 3.2x to 2.6x.

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