Lost allure: Matt Moulding with his wife Jodie. Inset, THG’s share slump
Hut Group boss Matt Moulding faces a shareholder revolt at the online retailer’s annual meeting on Friday over conflict of interest accusations involving one of its directors.
It will be the first chance for shareholders to quiz the firm’s founder and chief executive in person since THG’s controversial stock market flotation in 2020.
The company, whose shares have fallen by 76 per cent in the past year, is a takeover target for bidders including property tycoon Nick Candy. Investment firms Belerion and King Street Capital tabled a £2billion joint proposal last month.
Investors are uneasy that Belerion’s founder, Iain McDonald, is also a non-executive director at THG. Shareholder advisory firm ISS is recommending that investors vote against his re-election.
ISS questioned his independence given his longstanding relationship with Moulding and finance boss John Gallemore, having served alongside the pair for 12 years. Another advisory service, Glass Lewis, also urged shareholders to oppose his re-election, saying McDonald was an ‘affiliate or insider’ on the pay committee.
THG said it would ‘not be in the best interest’ of the business for him to leave the pay committee. It has also brushed off the takeover approaches. McDonald has already faced criticism for his role as both a potential bidder and THG board member. After his bid emerged Clive Black, a retail analyst at Shore Capital, said: ‘How on earth can you be a non-executive director and party to a potential bid? It just brings smoke and mirrors to mind.’
It is the latest in a series of governance grievances to rock the business. These include Moulding’s golden share, which allows him to block takeover bids.
He has agreed to surrender it and has also stepped down as chairman following investor objections. THG is now chaired by City heavyweight and ex-ITV boss Charles Allen.
Founded by Moulding in 2004, THG sells skincare, make-up and supplements, and its brands include Lookfantastic and Myprotein.
