Ex M&S chief Rose takes stake in The Hut

SIR Stuart Rose, the former chairman of Marks & Spencer, has taken an equity stake in Northwich-based online retailer The Hut Group.

According to the Mail on Sunday, Sir Stuart has bought shares in the company ahead of a potential flotation later this year.

The Hut Group, which was co-founded by chief executive Matthew Moulding and John Gallemore, has raised £32.5m in pre-IPO funding from a number of institutional funds including Artemis, Balderton Capital and William Currie Group. Current chairman Angus Munro – former chief executive of Matalan Group – also owns a stake.

In January, the firm announced that its sales in 2010 grew by 70% to £87m. The company started by offering sales of CDs, DVDs and other entertainment products through its own brand website and then began a series of partnerships launching entertainment sites for retailers such as Tesco, Boots and Asda.

However, speaking to TheBusinessDesk.com last week following the Government’s decision to scrap low value consignment relief (allowing CDs shipped from offshore sites in Jersey VAT-free), mergers and acquisitions director Steve Whitehead said that more than half of its sales now came through other categories such as health & beauty or fashion.

The company has diversified via a string of acquisitions into grooming, fashionwear and gifts by buying sites including Lookfantastic.com, iwantoneofthose.com and washbag.com.

Moreover, the bulk of the CDs shipped by the company move via warehouses in the UK and therefore do not qualify for the relief.

He added that of greater interest to the firm was the announcement by the government that it would fund new apprenticeship places. The Hut Group expects to train around 150 new employees for its Northwich HQ this year, while Lookfantastic has a division which is expected to train up to 250 hairdressers and stylists.

“We’ve virtually doubled in size every year so recruiting the numbers we need is difficult,” said Whitehead. “Apprentices are also a fantastic way to make a difference in an area.”

The Hut declined to comment on Rose’s investment..