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(Alliance News) - THG PLC on Friday confirmed the sale of two loss-making businesses for a total of about GBP4 million, as part of a company simplification exercise that the e-commerce platform announced back in January.
THG said it sold the trade and assets of the THG OnDemand division to its management, funded by Boston, Massachusetts-based investment firm Gordon Brothers. In the second quarter of this year, it had sold cycling equipment provider ProBikeKit to high-street retailer Frasers Group PLC.
The announcement on Friday confirmed a report by Sky News late Friday.
Manchester-based THG, which trades as The Hut Group, will receive a total of about GBP4 million for the two businesses.
More importantly, it will remove businesses that made a combined loss of GBP14.6 million in 2022 on the earnings before interest, tax, depreciation and amortisation level.
THG as whole suffered a GBP549.7 million pretax loss in 2022, widened from GBP186.3 million in 2021, prompting the strategic review.
THG on Friday said the financial impact of the two disposals already is incorporated into previous guidance.
"Through the years, our incubator division OnDemand has cultivated our talent, technology and trading strategies," said Chief Executive Officer Matthew Moulding.
"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."
By Tom Waite, Alliance News editor
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