THG has appointed as its chair a former chief executive of ITV to “drive growth” and create long-term value after a year in which the UK online group’s shares have tumbled on concerns over its strategy and leadership.
Charles Allen, who led the FTSE 100 media group for three years from 2004, will join the Manchester-based ecommerce company as independent non-executive chair with immediate effect, THG said in a statement on Tuesday.
Allen’s appointment ends an international search that began in October when THG split the roles of executive chair and chief executive. Its co-founder Matthew Moulding will remain at its helm.
“Charles has a clear mandate to refresh THG’s board and further strengthen governance and diversity,” the statement said. Allen will work with Moulding “in developing the management team, as well as refining the group’s strategy”.
Shares in the Manchester-based group, which specialises in selling beauty and nutrition products to young and image-conscious consumers, have fallen more than 80 per cent in the past year, as analysts and investors raised questions about THG’s technology, strategic direction and corporate governance.
The stock climbed just over 3 per cent in early trading on Tuesday following the announcement of Allen’s appointment.
Allen is chair of UK infrastructure group Balfour Beatty and privately owned Global Media and Entertainment. He has previously been executive chair of EMI Music.
Allen’s expertise, knowledge and skills “will help THG to continue to drive profitable and sustainable growth, deliver for all our stakeholders and to meet the highest standards of corporate governance”, Moulding said.
Source: Financial Times