What Went Wrong at Hut Group?

It's been a bruising ride for investors in e-commerce group THG, but the story may have another twist if it's taken private

James Gard 11 November, 2021 | 12:03AM
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It’s been a dramatic period for investors in The Hut Group (THG). The health and beauty e-commerce site was the largest float on the London Stock Exchange last year, and the biggest since 2013. But it has fallen from grace spectacularly in the last few weeks. After a strong start as a public company last year, it’s all been downhill in 2021, with a brutal 75% fall this year. The firm’s founder and chief executive Matthew Moulding now says the London IPO was a mistake. What should investors make of this remarkable turnaround?

What Went Wrong?

THG's shares floated at 500p to great fanfare in September 2020, rising 25% on the first day of trading. After the Covid-19 crash, the successful float was seen as a vote of confidence in UK listings, especially as THG was an e-commerce company--and one that UK plc conspicuously lacked (the Deliveroo float was still to come).

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About Author

James Gard  is content editor for Morningstar.co.uk