Mike Ashley's Frasers buys significant stake in Matt Moulding's THG
Mike Ashley's Frasers buys significant stake in Matt Moulding's THG
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Frasers Group has bought a significant stake in THG after the e-commerce group said it expects to return to growth this year. THG is in the process of demerging its tech business Ingenuity in efforts to slash costs and right-size the group, which has suffered heavy losses, slowing e-commerce demand and corporate governance issues since its 2021 London IPO.
Its founder Matt Moulding has also blamed high interest rates, Brexit and ‘the dwindling capital pool’ of the London bourse. Frasers, which has built stakes in several consumer businesses in recent years, has now taken a stake in THG equivalent to almost 4.8 per cent of the business, according to a stock market filing on Tuesday.
The retail giant had previously bought £10million in shares as part of a £95.4million fundraising by THG, after buying a group of the firm's luxury goods websites. The move into luxury is part of the ‘elevation’ strategy under chief executive Michael Murray, who is married to owner Mike Ashley’s daughter Anna.
THG founder Matt Moulding has blamed high interest rates, Brexit and ‘the dwindling capital pool’ of the London bourse for the firm's losses. Murray said last year Frasers was working with THG to unlock 'further benefits for both businesses'. THG shares jumped 6.5 per cent to 42.59p at the open on Tuesday in response to Frasers' newly-disclosed stake.
