After a six-month review of OnDemand, THG sold the incubator brand division to client Newco, led by the existing OnDemand management team and funded by advisory and investment firm Gordon Brothers.

WHO: THG's OnDemand division includes entertainment retailer Zavvi and gifting specialist I Want One Of Those.

THG was founded in 2004 by Chief Executive Matthew Moulding and CFO John Gallemore, retails more than 8,000 brands, and operates more than 160 localized websites across 35 languages and 42 currencies. THG has become one of Europe’s largest online retailers of premium beauty brands. Other holdings include Eyeko, Illamasqua, ESPA, SkinStore, RY, Glossybox, Lookfantastic.com, Grow Gorgeous, Ameliorate, Acheson & Acheson, Christophe Robin, and Perricone MD.

Since 1903, Gordon Brothers has helped lenders, management teams, advisors, and investors move forward through change. The firm brings a powerful combination of expertise and capital to clients, developing customized solutions on an integrated or stand-alone basis across four service areas: valuations, dispositions, financing, and investment.

WHY: The divesture is part of the strategic review conducted by THG on its loss-making categories and territories as it aims to simplify and streamline operations.

IN THEIR OWN WORDS: THG CEO Matthew Moulding said, “Through the years, our incubator division OnDemand has cultivated our talent, technology and trading strategies. I am delighted to see management and Gordon Brothers continuing the fantastic work of the OnDemand team, and I have no doubt the ProBikeKit business will continue to thrive under Frasers Group. We will remain close partners with both the OnDemand management team and Frasers Group through continued Ingenuity services.”

DETAILS: 

• Gordon Brothers funded the management buyout of the OnDemand division's business and assets from THG through a £5 million facility secured by multiple collateral classes, including inventory and plant and machinery.
• In addition to the OnDemand division, the e-commerce company sold ProBikeKit, a provider of cycling equipment, to Frasers Group in the second quarter of 2023. The two businesses collectively contributed to an EBITDA loss of £14.6 million in FY22. 
• The total proceeds from the sale of the two businesses is £4 million ($5.1 million).
• Newco will remain a client of THG’s Ingenuity logistics arm for the provision of technology, operational, and digital services.