// The Hut Group beauty suppliers limit flow of stock to the retailer
// THG is reportedly implementing heavy discounting on beauty products
The Hut Group’s beauty suppliers are reportedly limiting the flow of stock to the online retailer over growing concerns that it is implementing heavy discounts to reach sales targets.
Dermalogica is among the beauty brands that has taken action to protect its pricing by reducing supplies to THG.
The dispute came after THG owner Matthew Moulding prepares for a private equity bidders to seize on THG’s bombed-out share price.
READ MORE: The Hut Group circled by private equity giants
Bankers from Barclays and Jefferies are advising THG on a potential bid defence.
THG owns other beauty brands such as Lookfantastic, Dermstore and Cultbeauty.
The rebellion led by Unilever signals that the mounting pressure THG and Moulding have been under since going public in 2020 has now spread to its supply chain, The Telegraph reported.
THG was recently forced to cut its growth forecasts last month on slower sales expansion.
It has also faced claims it may have overstated the potential of Ingenuity, its technology service business, which aims to provide online retail capabilities to third parties.
Beauty is the core of THG’s current business, accounting for more than half of sales.
THG said it is working together with its partners to ensure it has the best products available.
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