THG has ‘no notifiable reason’ for share price fall amid supplier row claims
Manchester-based ecommerce company THG has refuted reports that it’s experiencing supplier problems and said it “knows of no notifiable reason” for its declining share price.
It follows a Sunday Telegraph report of a dispute between THG and one of its suppliers.
The Telegraph retracted the story on 10 March and said it is “not aware of any such disputes or restrictions”.
When contacted for comment, a THG spokesperson referred UKTN to a statement published via the London Stock Exchange on Tuesday: “Dermalogica has not placed and is not looking to place any restrictions on its trading relationship with THG Beauty, including with regard to the supply of stock.”
THG added that it isn’t aware of “any other key supplier” to its beauty division that plans to reduce its product supply.
The online retailer said it has a ten-year trading history with Dermalogica but that it accounts for around 0.1% of total annual sales.
THG, formerly known as The Hut Group, owns brands including Cult Beauty, Myprotein and Coggles. Earlier this month there were reports that private equity firms were considering a buyout of THG.
Last year, Softbank structured a complex deal to acquire a 19.9% stake in THG Ingenuity, the company’s then-nascent technology division for $2.33bn (£1.6bn).
Analysts have pointed to this deal as a contributing factor in THG’s slumping share price. The company is currently valued at £1.8bn, a record low and significantly down from £5.4bn when it floated on the London Stock Exchange in September 2020.
On Wednesday the THG share price slumped to a low of 95.31p.
This story was updated to show that the Telegraph has retracted its original story.