THG hires former ITV boss Lord Allen as first external chairman in a bid to mend relations with the City
An experienced administrator, Lord Allen currently chairs the FTSE 250 construction group Balfour Beatty and was previously president of the label NDEservice group ISS and chicken giant 2 Sisters Group.
Investors hope he can improve communication between THG management and the City. Relationships have reached the breaking point in in recent months amid concerns over governance, transparency of trade metrics and strategy.
Shares of the former stock market darling have fallen more than 80% since last summer. CEO Matt Moulding, who was chairman until Lord Allen took over, said blamed a conspiracy of short sellers for his business woes.
Lord Allen said he had “a clear mandate to improve governance and transparency”, as well as to strengthen the board and work with beleaguered CEO Matt Molding on strategy.
“This is an extremely exciting, fast-paced business that has grown rapidly and offers many opportunities for significant future growth,” he said.
“Matthew is now able to focus full-time on the business which, combined with a very strong management team and passionate and committed colleagues across the business, ensures that THG is well placed. to offer to all its stakeholders.”
Molding said: “I’m delighted we were able to bring in someone of Charles’ caliber and reputation.
“On a personal level, his appointment will allow me to focus my attention on the realization of the Group’s growth projects.”
The shares fell 1p to 87.85p.