THG offloads loss-making divisions in bid to streamline as share price slumps
THG has offloaded its OnDemand business to the division’s management team as the online retailer steams ahead with plans to streamline its operations.
The brand which included entertainment retailer Zavi and gadget and toy retailer I Want One of Those – was bought by the groups management team and has also received extra funding from advisory and investment firm Gordon Brothers.
The e-commerce platform sold its cycling arm ‘ProBikeKit’ to Frasers Group in the second leg of this year, both sales have raised a total of £4m for the brand.
“Through the years, our incubator division OnDemand has cultivated our talent, technology and trading strategies,” Matthew Moulding, chief of THG, said.
“I am delighted to see management and Gordon Brothers continuing the fantastic work of the OnDemand team, and I have no doubt the ProBikeKit business will continue to thrive under Frasers Group.
“We will remain close partners with both the OnDemand management team and Frasers Group through continued Ingenuity services.”
Its share price slumped -2.53 per cent this morning following the news of the sale of the two loss-making divisions.
In April the brand posted an operating loss of £495.6m as its costs are jacked up by soaring international delivery costs.
The group, which sells third party beauty and luxury items, also batted away a takeover bid from US private equity giant Apollo.
However, THG said today that its cash flow performance for the 12 months to 30 June 2023 was ahead of expectations.