The company was founded in Manchester in 2004 with a £500,000 investment by Matt Moulding and John Gallemore. The company sold CDs and DVDs online before creating white-label web stores for large physical retailers, including Asda, Argos Entertainment, Tesco and WHSmith. It operated a warehouse in Guernsey, allowing customers to avoid paying VAT on items priced below £18.The creation of the iPhone in 2007 undermined this business model and The Hut Group began acquiring internet retailers and moving them into the group's existing systems and warehouses. The company purchased Zavvi in 2009, Lookfantastic in 2010 and Myprotein in 2011. The group focused on beauty and lifestyle products because of the large margins and potential for international scaling.Investors included Terry Leahy, a former chief executive of Tesco, and Stuart Rose, the chairman of Ocado. In 2014, the company sold a 19.2% stake to KKR, while Balderton Capital, a technology investor, held an identical stake. BlackRock invested £138 million in February 2016, and Sofina announced an undisclosed equity stake in May 2016. In August 2017, Sky News reported that Old Mutual Global Investors had made their first private equity investment in The Hut Group. In 2017, The Hut Group was valued at more than £2.5 billion making it one of the most valuable private companies in the United Kingdom, and one of the UK's unicorn companies.On 16 September 2020, THG floated on the London Stock Exchange, the largest IPO on the LSE since 2013. The share price rose in value by 25% on the first day of trading, generating £920m for the company and £961m for the company's owners. After the flotation, Moulding received one of the biggest payouts in UK corporate history of at least £830m in shares.However, by early October 2021, THG's share price had fallen by more than 60% since the start of the year. On 12 October 2021, the company held a capital markets day to unveil its sustainability strategy with investors. Afterwards, shares fell by 35%, wiping £1.8 billion off THG's value.Following criticism of the company's governance arrangements, Charles Allen replaced Moulding as chairman in March 2022, with Moulding remaining CEO.
