Following the acquisition of THG’s luxury division by Frasers Group, significant changes have emerged regarding order management for Coggles and The Hut.
- THG has formally canceled forward orders for the upcoming seasons, autumn/winter 2024 and spring/summer 2025, impacting about 200 brands.
- Frasers Group’s acquisition is part of a longer-term strategic partnership with THG, suggesting a transformative phase for involved brands.
- THG’s email to brand partners reflects immediate operational shifts as a result of this acquisition.
- The acquisition of THG’s luxury division, including brands like MyBag and Allsole, indicates a pivotal moment for Frasers Group.
Following Frasers Group’s acquisition of THG’s luxury division, notable operational changes have been initiated, affecting brands like Coggles and The Hut. In a move that has surprised many, THG has issued formal notifications to its brand partners declaring the cancellation of forward orders for the autumn/winter 2024 and spring/summer 2025 seasons. This decision impacts around 200 brands that have been collaborating with Coggles and The Hut, marking a significant shift in their commercial landscape.
The acquisition by Frasers Group represents a strategic partnership with THG, aiming to reshape the business dynamics of these luxury portals. While the immediate cancellation of orders has raised concerns among brand partners, these actions reflect a comprehensive restructuring effort by Frasers Group to reposition the luxury division under its new ownership. This partnership signifies a willingness to adapt and innovate in the competitive retail market.
In a communication seen by Drapers, THG expressed the necessity of these cancellations to all outstanding commitments with immediate effect. The rationale behind these swift changes remains a topic of speculation among the affected brands, with some suggesting that the acquisition is a strategic move by Frasers to consolidate and enhance its market share. As per a brand statement, “I can only assume that [Frasers Group is] buying [Coggles] to shut it down to increase its market share. You can’t have a business with no stock.”
THG’s luxury division, which extends beyond Coggles to include MyBag and Allsole, presented sizable sales figures of approximately £43 million in the prior year while maintaining a break-even financial position. Matthew Moulding, CEO of THG, articulated a positive outlook regarding the sale, emphasizing the growth of their luxury brand portfolio over the past eleven years. He expressed eagerness to see further development under the new management of Frasers Group. However, official comments from THG and Frasers on these developments have not been forthcoming.
The acquisition marks a transformative phase for THG’s luxury brands under Frasers Group’s new strategic direction.
