Media reports abound on the latest in THG’s developments.
This time it revolves around Advent International and Leonard Green who are said to be considering a buyout of THG. The group has seen its shares fall by over 80 per cent over the last year following assorted concerns over the business’ management structure and the seeming inability of its co-founder Matt Moulding to win over the support of investors. He has been attacked for his poor personal performance at THG’s investors’ day in October with some claiming that Moulding wrongly, and perhaps arrogantly, believed he had investors in the palm of his hand and that he could do as he wished without their support. There have also been concerns expressed about the long term commercial viability of the THG Ingenuity platform as a third party solution for other retailers.
Moulding has been heavily critical of the way in which he has been attacked in the media and has gone on record as saying that he should have listed THG in the US rather than in the UK. He had submitted a dossier to the Financial Conduct Authority suggesting that THG shares have fallen due to a conspiracy on the part of hedge funds and stockbrokers. This is under investigation.
The latest buy out speculation saw THG shares rise by 16 per cent on Friday only to fall back again this week. It now seems fairly certain that efforts will be made to take THG private by Moulding himself with friendly investors in tow, or by private equity investors. Either way, it would seem prudent to bring in a seasoned CEO, chair and independent non-executive board to satisfy concerns about corporate governance and to build back confidence in the business and its future.
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