Following the acquisition of THG’s luxury division by Frasers Group, significant changes are underway.
- Premium and luxury brands associated with Coggles and the Hut are affected by order cancellations.
- The deal between Frasers Group and THG involves multiple luxury online platforms.
- Certain brands express concerns over the future of Coggles and The Hut’s viability.
- Confirmed lack of comments from key players, THG and Frasers Group, raises uncertainty.
The acquisition agreement between Frasers Group and THG has led to substantial operational changes impacting brands linked with Coggles and The Hut. These brands, known for their premium and luxury offerings, have started receiving notifications about the cancellation of their forward orders.
In a formal communication sent to brands, THG confirmed the cancellation of all outstanding commitments for the upcoming autumn/winter 2024 and spring/summer 2025 seasons. The email was released shortly after Frasers Group announced its intention to acquire THG’s luxury division, which includes Coggles, as part of a broader multi-year partnership.
One brand representative voiced concerns, suggesting that Frasers Group’s acquisition might aim to close down Coggles to consolidate market share. The individual highlighted the difficulty of operating a business without inventory, underlining the uncertainties faced by affected brands.
Last year, THG’s luxury division, which encompasses entities such as The Hut, MyBag, and Allsole, reported approximately £43 million in sales. Although the division was roughly at break-even, this strategic move suggests a shift in business focus from both Frasers Group and THG.
The leadership from THG, represented by CEO Matthew Moulding, expressed confidence in the growth and development of its luxury brand portfolio, despite declining to comment on the recent developments. Additionally, Frasers Group has not offered any public statements responding to these organisational changes.
The acquisition of THG’s luxury division by Frasers Group has introduced significant operational shifts, causing uncertainty among affected brands.
