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The Hut Group crisis deepens over 'loss of trust' as rout continues

Hut Group founder Matt Moulding has seen the value of his 14.2 per cent stake fall by £701m in the last five weeks

The City rounded on The Hut Group and its founder yesterday as the firm tried to defend itself amidst a stock market rout.

A disastrous presentation led investors to take flight, wiping £1.8billion off the value of the company in just two hours on Tuesday. 

Yesterday the firm, known as THG, was in crisis mode as analysts panned the company’s ‘unproven’ investment case and ‘loss of trust’. Shares fell 2.9 per cent, or 8.4p, to 276.6p, considerably below the 500p that the shares floated at in September 2020.

Matt Moulding, the company’s founder and executive chairman, has seen his 14.2 per cent stake fall by £701million in five weeks.

Yesterday financial adviser Numis slashed the target price for shares to 230p suggesting the stock has even further to fall. The collapse helped short-seller PSquared, which took a 1.01 per cent bet against the stock last week, to a profit of around £45million.

In a rearguard action, THG put out a statement saying there was ‘no notifiable reason for the material share price movement, and no material new information’.

RELATED ARTICLES Share this article Share HOW THIS IS MONEY CAN HELP The Manchester-based group, which sells clothes, make-up and protein shakes online, highlighted its ‘strong’ recent trading and a cash balance of £700million. 

In an attempt to arrest the share-price fall, non-executive director Damian Sanders bought £49,700 of shares at 297.6p per share.

The move came as some City analysts suggested now was a good buying opportunity for investors.

The share price has been under pressure after THG made a surprise announcement to spin out its beauty business to focus on its logistics platform, Ingenuity, an ‘unproven’ loss-making business.

Russ Mould, director at AJ Bell, said: ‘This creates a conundrum.

On the one hand, there is no point going against the flow if the market has decided THG is a dud.

‘On the other hand, investors are being given the chance to snap up shares at a price where the original source of excitement is essentially thrown in for free. 

THG Ingenuity was the reason why the market was initially excited, Berita Indonesia a one-stop-shop handling web selling and logistics, aimed at brands seeking to sell direct to the consumer.’

A note from The Analyst claimed THG’s shares had been ‘overhyped’ and were worth just 260p, putting pressure on Moulding to answer questions as a capital markets day event on Tuesday. 

But the meeting was a disaster, and investors flooded for the exit, driving the share price down by 35 per cent.

The business is effectively undergoing a restructuring a year after listing.

Simon Bowler, at Numis, said: ‘We worry enthusiasm for Ingenuity is likely to wane.’ Roland French, at Davy, said: ‘Management has lost the trust of the market.’

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The Hut Group crisis deepens over 'loss of trust' as rout continues

Hut Group founder Matt Moulding has seen the value of his 14.2 per cent stake fall by £701m in the last five weeks

The City rounded on The Hut Group and its founder yesterday as the firm tried to defend itself amidst a stock market rout.

A disastrous presentation led investors to take flight, wiping £1.8billion off the value of the company in just two hours on Tuesday. 

Yesterday the firm, known as THG, was in crisis mode as analysts panned the company’s ‘unproven’ investment case and ‘loss of trust’. Shares fell 2.9 per cent, or 8.4p, to 276.6p, considerably below the 500p that the shares floated at in September 2020.

Matt Moulding, the company’s founder and executive chairman, has seen his 14.2 per cent stake fall by £701million in five weeks.

Yesterday financial adviser Numis slashed the target price for Berita Pesona Indonesia shares to 230p suggesting the stock has even further to fall. The collapse helped short-seller PSquared, which took a 1.01 per cent bet against the stock last week, to a profit of around £45million.

In a rearguard action, THG put out a statement saying there was ‘no notifiable reason for the material share price movement, and no material new information’.

RELATED ARTICLES Share this article Share HOW THIS IS MONEY CAN HELP The Manchester-based group, which sells clothes, make-up and protein shakes online, highlighted its ‘strong’ recent trading and a cash balance of £700million. 

In an attempt to arrest the share-price fall, non-executive director Damian Sanders bought £49,700 of shares at 297.6p per share.

The move came as some City analysts suggested now was a good buying opportunity for investors.

The share price has been under pressure after THG made a surprise announcement to spin out its beauty business to focus on its logistics platform, Ingenuity, an ‘unproven’ loss-making business.

Russ Mould, director at AJ Bell, said: ‘This creates a conundrum.

On the one hand, there is no point going against the flow if the market has decided THG is a dud.

‘On the other hand, investors are being given the chance to snap up shares at a price where the original source of excitement is essentially thrown in for free. 

THG Ingenuity was the reason why the market was initially excited, a one-stop-shop handling web selling and logistics, aimed at brands seeking to sell direct to the consumer.’

A note from The Analyst claimed THG’s shares had been ‘overhyped’ and were worth just 260p, putting pressure on Moulding to answer questions as a capital markets day event on Tuesday. 

But the meeting was a disaster, and investors flooded for the exit, driving the share price down by 35 per cent.

The business is effectively undergoing a restructuring a year after listing.

Simon Bowler, at Numis, said: ‘We worry enthusiasm for Ingenuity is likely to wane.’ Roland French, at Davy, said: ‘Management has lost the trust of the market.’

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The day Facebook, Instagram and WhatsApp went down: Funniest memes and jokes

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How do you talk about  when you can’t talk about the outage on Facebook, WhatsApp and Instagram? Many people turned to Twitter when the three Facebook-owned properties on Monday. 

Squid Game memesThe South Korean series has turned into a , Berita Pesona Indonesia so of course many of the memes played off the show. Squid Game is about people in desperate financial straits who enter a deadly tournament of children’s games to try and win big money. Some memes featured those contestants reacting to the outage. 

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A tweet from Netflix showed a contestant, labeled as Twitter, holding back a contestant labeled “Everyone” — in the show, that gesture saves the first contestant’s life.

And another showed the business card given to people invited to play in the deadly Squid Game tournament, with the text, “WhatsApp, Instagram and Facebook have all gone down. It’s time, y’all.”

When Instagram & Facebook are down.

— Netflix (@netflix)

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WhatsApp, Instagram and Facebook have all gone down.

It’s time, y’all.

— Ahmed Ali (@MrAhmednurAli)

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Congratulations, you made it to the next round

— drey (@Dreymwangi)

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FB and IG:

— John (@Nonjonx_10)

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— kyr (@KyrKnn)

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— Twitter (@Twitter)

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OMG!??

— John (@Nonjonx_10)

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Is it just me?

Non-Squid Game memes were plentiful too. Some memes played off users’ initial confusion as to whether the sites were down for everyone, or just them.

Nobody:

Me after I realized that everyone’s Facebook and Instagram were down and it wasn’t just me:

— Ethanlingen (@Ethanlingen1)

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Me whenever instagram,whatsapp or facebook is down: go to twitter and feeling relieved when I know it’s not just me

— emcriates (@emcriates)

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Me running to Twitter to see if facebook and Instagram are down or if it’s just me

— Heather hugged Jesse McCartney👱🏻‍♂️ (@jmacfan1)

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Twitter saves the day?

Some memes were about Twitter as the one place site users could turn to and blab about the outage.

Even Twitter’s official account got in on the joke, tweeting, “Hello literally everyone.”

hello literally everyone

— Twitter (@Twitter)

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“Since FB and IG is down, Twitter Party y’all!!!!!!” one person wrote.

Another played off the “emergency meeting” part of the Among Us game, writing, “Everyone’s having an emergency meeting at Twitter right now since FB and IG are down.”

since FB and IG is down, Twitter Party yall’!!!!!!

— domo (@D_Omogggg)

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Everyone’s having an emergency meeting at Twitter right now since FB and IG are down. 🤣

— ❄ AKIRA⁷ ❄ (@THEWANNAITE)

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Everyone coming to Twitter like…

— Ziad is in less pain  (@Ziad_EJ)

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social media managers when FB and IG go down ?? 😲

— ً龍暴 (@hellojerico)

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— Efe doğru (@Efedogru__)

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Well hello there Twitter, who surely had absolutely nothing to do with Instagram and Facebook being down, LMAO.

— BrooklynDad_Defiant! (@mmpadellan)

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Here come the brands

Twitter wasn’t the only official corporate site to jump in on the jokes. Brands can fall cringingly flat when they try for humor, but some of the outage jokes from corporate accounts were pretty funny.

“Gen Z is manning all the tech plat twitter accts and it’s hysterical,” wrote one person. “Best thread 2021.”

Gen Z is manning all the tech plat twitter accts and it’s hysterical. Best thread 2021

— RN_Independent😷 (@CentristRn)

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PBS followed up on Twitter’s tweet about welcoming everyone to its platform by quoting the Mister Rogers’ Neighborhood song.

It’s a beautiful day in this neighborhood,

A beautiful day for a neighbor.

Would you be mine? 😊

— PBS (@PBS)

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The band Metallica chimed in with “HEYYYYYY-AHHH!”

HEYYYYYY-AHHH!

— Metallica (@Metallica)

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The Twitter account for The Sims game responded with Simlish for hello — “sul sul.”

sul sul 👋💚

— The Sims (@TheSims)

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And the Guinness Book of World Records account noted the “record for most people on Twitter at once has probably been smashed by now.”

Record for most people on twitter at once has probably been smashed by now 👀

— #GWR2022 OUT NOW (@GWR)

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Starbucks, naturally, suggested the outage was the “perfect time for a coffee break.”

Perfect time for a coffee break.

— Starbucks Coffee (@Starbucks)

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And the Cup Noodles Twitter account (yes, there is one) had a very on-brand, all-caps response: “HI TWITTER!!! TECHNOLOGY IS A FUNNY THING!!! THAT’S WHY WE STICK TO NOODLES!!!”

HI TWITTER!!!

TECHNOLOGY IS A FUNNY THING!!!

THAT’S WHY WE STICK TO NOODLES!!!

— Original Cup Noodles (@OrigCupNoodles)

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Jeff Bezos gets physical: Now Amazon is opening real shops of its own 

Some months ago, I tried to stop using Amazon. How hard could it be, I asked myself, to shop elsewhere online? 

To avoid watching films on its Amazon Prime Video service, to put down the Kindle e-reader – and slip the shackles of the company’s smug billionaire founder Jeff Bezos?

Within weeks, though, I caved – seduced by purchases that were either half the price of those in my local shops or not available at all.

Amazon’s ‘four-star store’ in Kent’s Bluewater shopping centre sells more than 2,000 of the most popular products from Amazon’s website in a shop the size of an Olympic swimming pool

For its sheer convenience and jaw-droppingly low prices, Amazon has brought much of the High Street to its knees.

RELATED ARTICLES Share this article Share HOW THIS IS MONEY CAN HELP Last week the tech giant opened its first physical non-food store outside the United States, in Kent’s Bluewater shopping centre – the location all-too symbolic alongside struggling stalwarts John Lewis, Marks & Spencer and House of Fraser.

The ‘four-star store’ sells more than 2,000 of the most popular products from Amazon’s website in a shop the size of an Olympic swimming pool. 

And, in a further assault on the British retail landscape, it will use its carefully honed algorithms to study local shopping habits and create a tailored experience designed to trounce the competition.

Bosses are secretive about the four-star store expansion plans, but America now has more than 30.

British retailers will be quaking.

Around 400,000 jobs in the industry have been lost since the outbreak of Covid, while some of the best-loved names in retail including Debenhams, Topshop and Monsoon were felled by the pandemic. Even John Lewis and M&S have been forced to shut stores.

It’s perhaps the final tragi-comic twist that Amazon – which has done so much to hammer their business models – is opening up in their former turf.

The new shop in Kent arrives after six ‘Fresh’ Amazon grocery shops have launched in Britain in the past year – all featuring futuristic ‘checkout-free’ technology.

Just scan yourself in on your smartphone, pop the items in your basket and walk out: you’ll be charged automatically.

Fashion retailers are not safe on the High Street, either. Amazon has previously set up pop-up fashion stores in central London to ‘understand how Amazon fashion translates in physical retail’.

Research indicates that Amazon will overtake Tesco as Britain’s biggest retailer by 2025.

The company is also at the heart of the nation’s takeaway addiction via its £620million stake in Deliveroo, and it has even opened a hair salon, pairing trendy haircuts with top-of-the-range straighteners, hair dryers and curlers, which customers can then buy to be delivered to their home.

The tentacles have also reached well beyond retail, creeping onto our TV screens.

Last month the UK was gripped by Emma Raducanu’s triumphant victory at the US Open tennis – a final that, until Channel 4 bought it at the last minute, was going to be available only on the streaming service Amazon Prime Video.

The same service is now a dominant force in film and television (including originals such as Clarkson’s Farm). 

Amazon boss Jeff Bezos (pictured) started the $1 trillion internet titan just two decades ago from his garage in Seattle

And for those who happen not to be a fan of music, film, television, live sport, restaurant food, grocery delivery or haircuts, every taxpaying Briton is paying into Amazon’s coffers, as HM Government is a major customer of Amazon Web Services, its cloud computing division.

There are even rumours that Amazon could before long deliver NHS prescriptions in the UK, as it does in the US.

In short, almost no one escapes this $1 trillion company started just two decades ago from Bezos’s garage in Seattle.

UK customers here now spend an astonishing £83billion per year on the site, which employs 1.3million staff – around the same number as the NHS itself. 

Many will argue this is all air game from a tirelessly enterprising company that has made shopping quicker and easier for millions.

And few can doubt the benefits of Amazon’s £32billion of investment into the UK since 2010, or the 55,000 jobs it has created here, many in poorer regions.

Where Amazon has led, other big chains have been forced to follow, ramping up their online delivery provisions in a virtuous circle of competition.

But the Amazonisation of the British Isles has not come without cost.

The company’s business practices have long raised troubling questions about to whom, if anyone, it is accountable. 

Last year it paid less than £500million of ‘direct’ taxes on more than £20billion of UK sales. Critics labelled sections of its accounting statements the ‘opposite of meaningful transparency’.

Tax experts fear the US giant will not even be captured by the new rules agreed by the G20 group of nations earlier this year to force companies like Amazon to pay their fair share.

The way Amazon has expanded has also come under the microscope, with London councillors calling its planning applications for new Fresh stores ‘underhand’ and ‘opaque’.

One was filed under ‘British Overseas Bank Nominees Ltd M&G Property’, rather than Amazon, while another was said to have been filed by a local solicitors’ firm.

The move could be an attempt to keep jealous competitors at bay, or avoid the anger of local business people and residents – but it is not a tactic one would normally expect from such a large business.

Its ambition and ability to ‘disrupt’ so many industries must be applauded.

But as it grows to become one of Britain’s most important companies, pushing much-loved firms aside, it must take responsibility for its business practices and its role as a major Berita Pesona Indonesia employer.

Two decades after it arrived in the UK, it still has many questions to answer.

But will the customers trooping into Bluewater want to ask them?

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