Hut Group picks City veteran Charles Allen chairman

Troubled online retailer The Hut Group (THG) has named former ITV boss Charles Allen chairman in an attempt to shore up support among investors.

Founder Matt Moulding said the appointment of the 65- year-old City veteran meant that the company would ‘meet the highest standards of corporate governance’.

It follows serious concern in the City over the power wielded by Moulding who was executive chairman, chief executive and the largest shareholder when the firm floated on the stock market in September 2020.

Confidence: THG founder Matt Moulding (pictured with wife Jodie) has seen shares  slump from 800p in early 2021 to just 89.35p

The stock listed at 500p and peaked close to 800p in early 2021. It has since fallen 90 per cent and last night closed at 89.35p.

Allen – now Lord Allen of Kensington – is charged with reinvigorating the company’s management team and refining the group’s strategy. He also has a mandate to ‘refresh’ the board, suggesting further changes could be on the way.

Hut Group sells skincare, make-up and supplements, and its brands include Lookfantastic and Myprotein.

Its main divisions are beauty, nutrition and its tech arm Ingenuity. It was seen as the darling of the stock market when it listed and was the biggest London IPO since the Royal Mail in 2013.

But Moulding, 50, drew heavy criticism for clinging on to his dual role at the top of the company.

He was also THG’s landlord and held a ‘golden share’ giving him the power to block any takeover attempts in the group.

But he was forced to scrap the special share arrangement and in October THG began seeking an independent chairman. 

Allen, who took charge yesterday, is currently chairman at construction giant Balfour Beatty and has held a host of high-profile roles in his 30-year career. 

He was the boss of ITV between 2004 and 2007 and has been chairman of 2 Sisters Food Group and EMI Music.

City veteran Charles Allen was the boss of ITV and has been chairman of 2 Sisters Food Group and EMI Music

Allen was made a peer in 2013 by then Labour leader Ed Miliband and was a confidant of Tony Blair when he was prime minister.

He said: ‘It is a privilege to be joining as the board’s chair with a clear mandate to improve governance and transparency, strengthen the board by improving its independence and diversity, review and develop the strategy and support management as it seeks to further strengthen its talented leadership team.’

Hut Group will be hoping he can inspire confidence in the City, with relations between Moulding and investors close to breaking point.

In November Moulding said he regretted listing in London, saying the process had ‘just sucked from start to finish’.

The billionaire also hinted that he could take the firm private if its share price performance did not improve.

Liberum analysts said: ‘Following a raft of other improvements to the group’s corporate governance structures last year, this appointment addresses nearly all the concerns previously raised.’

They added that if the share price fails to improve the business could become a takeover target.

This post first appeared on Dailymail.co.uk