The Hut Group (also known as "THG") is a British e-commerce company with headquarters in Northwich, Cheshire. It operates over 100 international websites selling Fast-moving consumer goods ("FMCG") direct to consumer through its proprietary technology and operating platform. As of 2015, The Hut Group's sales have predominantly been outside the UK.
The Hut Group is regarded as a European technology unicorn (private company valued at over $1 billion). In 2017 it was valued at more than £2.5bn making it one of the most valuable private companies in the United Kingdom.
Video The Hut Group
History
The Hut Group was founded in 2004 by Matthew Moulding and John Gallemore, when Matthew bought a CD online at a price much cheaper than in store and realised the disruptive potential of online retail. Matthew launched the company with a £500,000 investment and a focus on entertainment products such as Music and Gaming.
In order to build up revenues and profitability, The Hut Group used its proprietary technology platform as a whitelabel solution for large physical retailers who wanted to go online. This included ASDA, Argos Entertainment, Tesco and WHSmith.
Maps The Hut Group
Locations
The Hut Group's main headquarters is in Gadbrook Park, Cheshire. Part of the Northern Powerhouse, it is one of 20 tech British-based unicorns as of 2016.
Ownership
Chaired by Richard Pennycook, formerly chief executive of the Co-operative Group, its investors include Sir Terry Leahy, the former Tesco chief executive, and Lord Rose, the chairman of Ocado. In 2014, the company sold a 19.2% stake to KKR, while Balderton Capital, a technology investor, owns an identical stake. BlackRock, the world's biggest asset manager is also a shareholder and invested £138m in February 2016.
In May 2016, Sofina announced an undisclosed equity stake in The Hut Group.
In August 2017, Sky News leaked that Old Mutual Global Investors had made their first private equity investment in The Hut Group.
Acquisitions
The Hut Group 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 its proprietary technology platform. In 2016, the group made its first ever physical retail acquisition with the purchase of Hale Country Club & Spa.
Litigation
Oliver Cookson was involved in a long running case of litigation with The Hut Group over the sale of Myprotein in 2011. Cookson was sued for £15 million, with The Hut Group claiming overestimation affected the valuation of the company when they bought it. Cookson counter sued for £12.7 million claiming a breach of warranty and fraudulent mis-representation. 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 giving Oliver Cookson an overall net result win of £6.5m in damages.
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 Mr Cookson and the Trust.
Oliver Cookson and the Trust appealed the court's decision to award The Hut Groups damages. The court of appeal dismissed the appeal on 22 March 2016.
References
External links
- Official website
Source of article : Wikipedia
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