Manchester-headquartered eCommerce giant THG has opted to sell its loss-making THG OnDemand division following a strategic review.
The company has also agreed to sell its specialist provider of cycling equipment, ProBikeKit, to Frasers Group in a combined deal worth around £4m.
The decision is part of its strategy to simplify and streamline its operations.
THG OnDemand have been sold to a new company led by its management team led by Leigh Amery and is funded by Gordon Brothers, the advisory and investment firm.
The new company will continue to be a client of Ingenuity, with the provision of technology, operational and digital services.
THG OnDemand and ProBikeKit made combined losses of £14.6m in 2022.
THG Matthew Moulding said: “Through the years, our incubator division OnDemand has cultivated our talent, technology and trading strategies.
“I am delighted to see management and Gordon Brothers continuing the fantastic work of the OnDemand team, and I have no doubt the ProBikeKit business will continue to thrive under Frasers Group.
“We will remain close partners with both the OnDemand management team and Frasers Group through continued Ingenuity services.”
Moulding opened up about the sale of OnDemand in his latest LinkedIn post on Friday.“This morning THG announced we’ve sold our incubator brand division, OnDemand, to management. They’re being backed by Gordon Brothers, a multi-billion dollar US finance firm.
“It’s bitter because the division holds a special place for me and THG. Yet it’s sweet because the long-serving management team now own it. They’ve more than earned the opportunity.
“Leigh Amery joined THG as a finance trainee 18-and-a-half years ago. I think he was our seventh employee back in 2004.
“After training to be an accountant, Leigh moved into various commercial roles becoming MD of OnDemand four years ago.
“18-and-a-half years’ service is unheard of in today’s modern world. Most people quit when the going gets tough, which it does at some point. He and his 50-person team deserve the right to shape the next chapter for OnDemand.
“The £3m sale proceeds is small to THG, but the heritage of OnDemand is massive. Everything at THG has been born out of this division through the years.”
He added: “I for one will be cheering on Leigh and the OnDemand team every step of the way.”
Amery said on LinkedIn: “Leaving THG is a big one for me personally.THG have played a huge part in shaping who I am as a person today. For anybody leaving school, college, or university looking for a chance in life then look no further than THG, genuinely.
“Be prepared to work hard, be honest and kind (and adaptable), and amazing things can happen. I actually left school following (my) GCSEs as I wanted the opportunity to learn on the job, and earn some cash at the same time.”