In a significant move, forward orders have been cancelled for brands stocked by Coggles and The Hut following the Frasers Group’s acquisition of THG’s luxury division.
- THG communicated the cancellations via email to various premium and luxury brands, citing the recent acquisition as the reason.
- The deal, announced on 24 June, involves Frasers Group purchasing THG’s luxury websites, including Coggles, marking a strategic transition.
- Concerns have been raised that this move by Frasers Group could lead to the closure of Coggles, impacting its market presence.
- The luxury division, including The Hut, had generated roughly £43 million in sales last year, presenting a break-even outcome.
Following the announcement of the acquisition by Frasers Group, THG has informed numerous premium and luxury brands that their forward orders for autumn/winter 2024 and spring/summer 2025 have been cancelled. This move signifies a strategic shift as Frasers Group integrates THG’s luxury websites, including Coggles, into its portfolio.
The communication from THG was delivered through an email stating the necessity to cancel all outstanding commitments for the upcoming seasons with immediate effect. This formal notice has sparked speculation among brands, with one expressing concern that Frasers Group might be planning to shut down Coggles to enhance its market share, as maintaining a business without stock is unviable.
This acquisition is part of a broader multi-year partnership between THG and Frasers Group, underscoring a long-term strategic alliance. Despite the substantial sales of £43 million achieved by THG’s luxury division last year, which includes Coggles, the financials were deemed broadly break-even.
Matthew Moulding, CEO of THG, highlighted the growth of the company’s luxury brand portfolio over the past eleven years and expressed anticipation for its future development under Frasers Group’s stewardship. However, neither THG nor Frasers Group provided further comments on the implications of this acquisition.
The Frasers Group acquisition of Coggles marks a significant shift, raising questions about future operations and market strategy.
