The Hut Group

After attracting interest from a range of institutional and strategic investors, Clearwater recently advised The Hut Group on a multi-million pound investment which provides the funds for CEO Matthew Moulding to drive the business through its next stage of growth.

The Hut operates two successful entertainment products-focused retail brands, TheHut.com and, following an acquisition in March 2009, Zavvi.com. Its unique twist is that as well as operating its own sites, it 'white labels' complete online retail platforms for a host of other major retail brands including Asda, Woolworths, Argos and WH Smith.

Clearwater has been retained advisers to The Hut Group since its inception in 2003, sourcing the initial seed capital and advising on its strategic M&A options. Our experienced Tech team has worked with the group on a series of acquisition opportunities including the recent acquisition of the Zavvi brand from the Administrators of Woolworths. The recent equity deal was a landmark deal for Clearwater by raising a multi million pound investment from Clearwater’s private investor network which is an alternative source of PE funding in these tough times. These deals have supported the following growth and accolades.

• The Hut Group was developed as a business model in October 2003. Entertainment products site TheHut.com launched in 2004 and the business also won its first major white-label client – Asda.

• Following a significant investment in infrastructure throughout 2005 and 2006 the business won a host of new clients in 2007 and 2008 including LoveFilm and Tesco.

• In 2008 the business added a range of new categories including computing, electronics, lingerie, perfume and sports & leisure.

• December 2008 and CEO Matthew Moulding is crowned Bank of Scotland & Sunday Times Entrepreneur of the Year.

• In 2009 the business adds an impressive list of new white-label customers including Argos, WH Smith, Woolworths as well as introducing a new category - flowers.

• March 2009 the business acquires high street brand Zavvi and relaunches the business as an online only operator the next day.

• In September 2009 the business ranks Number 1 in the Sunday Times Tech Track 100 and receives a capital injection from a group of private investors including Clearwater.

• 2009 sales are set to reach £90m (2008: £24m) and are forecast to rise to an impressive £130m in 2010.

• In 2010 the business will continue to focus on adding new categories and making acquisitions.

Matt Moulding CEO of The Hut Group explains why the successful fundraising deal by Clearwater will make a significant impact on the growth potential of the group.

“The funding helps to provide the necessary platform to continue our buy and build strategy following on from the successful acquisition of the Zavvi brand earlier in the year. It also enables us to focus on launching new product categories to broaden our proposition for both existing and new partnerships.

The company has grown rapidly and the recent raft of management appointments within the senior team means we are well on the way to deliver our ambitious target of £90m turnover in 2009. We’ll continue to improve the overall offer and experience to our customers which is our overall goal. This will deliver increased market share in all the areas we operate in.”