The retail billionaire’s newspaper deal looks like an indulgence when his core business needs attention
Matthew Moulding, media magnate, has a certain ring about it. And since the founder and chief executive of online retailer THG – The Hut Group, as was – is interested in newspapers, in the sense that he can be prickly about what’s written about the company, one can understand why he is buying City AM, the London-based business free sheet that put itself up for sale at the start of the month.
Yet one has to ask a few related questions. How on Earth does this deal fit with the rest of THG’s operations, which are dominated by nutrition and beauty products via websites including Myprotein and Lookfantastic? Isn’t this an example of the sort of corporate sprawl and drift that Lord Allen, the former chief executive of ITV, was hired as chairman last year to stop? And shouldn’t Moulding be buying City AM with his own money rather than the funds of THG shareholders? He owns only 25% of the company.
