THG has sold two of its loss-making divisions for a total of about £4 million in a bid to “simplify and streamline its operations”.
The ecommerce giant confirmed its OnDemand business has been sold to its management funded by investment firm Gordon Brothers, alongside, ProBikeKit being sold to high-street retailer Frasers Group.
As a result, the parent company of LookFantastic, will remove businesses that made a combined loss of £14.6 million last year.
This comes as the company suffered a £549.7 million pre-tax loss last year, widened from £186.3 million in the same period in 2021, prompting the strategic review.
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“Through the years, our incubator division OnDemand has cultivated our talent, technology and trading strategies,” CEO Matthew Moulding said.
“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.
“We will remain close partners with both the OnDemand management team and Frasers Group through continued Ingenuity services.”
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