Matt Moulding Raises Funds Amidst Struggles at THG

The founder of THG, previously known as The Hut Group, has recently committed to an additional £60 million investment in his beauty and nutrition empire. This move is part of a strategic fundraising round aimed at alleviating the pressures of existing debts. The company, which operates several well-known brands including Cult Beauty, Look Fantastic, and Myprotein, secured £90 million from a share issue that was reportedly oversubscribed.

Moulding’s contribution consists of a £55 million convertible loan alongside £5 million worth of “partly paid” shares. His ongoing investment in THG has reached approximately £50 million since the company floated at a valuation of £5.4 billion in 2020, a time when shares were launched at 500p each.

The recent fundraising should help reduce THG’s gross debt, which stood at roughly £686.2 million at the end of the 2024 financial year. Following the announcement, shares in THG witnessed a slight uptick of 3.2 per cent, rising by 1p to 35p.

Despite its challenges since going public, including waning sales and governance issues, THG aims to reposition itself as a cash-generative global retailer. Moulding has openly expressed his frustrations regarding media narratives and the complexities inherent in running a publicly listed business. In a recent LinkedIn post, he compared managing his business to parenting, highlighting the immense responsibilities he shoulders.

He mentioned that the listing on the London Stock Exchange has not yielded substantial profits, stating that he has waived all remuneration since the initial public offering, essentially costing him £15 million. Nevertheless, Moulding views his involvement in THG as akin to a personal journey, stating that “everyone has their own take on parenting”.

As THG looks to recover and redefine its financial structure, the company has sought input from influential shareholders prior to the fundraising. The support from large stakeholders, including Mike Ashley’s Frasers Group, is crucial as THG aims to strengthen its liquidity position and navigate through its financial challenges.