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THG hits high note with sale of music retailer Zavvi

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THG hits high note with sale of music retailer Zavvi

The London-listed online health and beauty group THG has struck a deal to sell Zavvi, once one of Britain’s best-known entertainment retailers.

Sky News has learnt that THG has agreed the sale of its OnDemand division to its management team with financing from Gordon Brothers, the specialist retail advisory and investment firm.

City sources said the deal would be announced on Friday.

The newly independent company will continue to be a client of THG’s Ingenuity logistics arm, they added.

If confirmed, THG’s disposal of OnDemand would complete the sale of non-core assets announced earlier this year.

It also sold ProBikeKit to Frasers Group, the high street group controlled by billionaire Mike Ashley.

The aggregate proceeds from the sale of the non-core assets is said to have been several million pounds.

The OnDemand division also includes I Want One Of Those, a gifting website, and Pop in a Box, which sells fast-moving consumer goods.

THG’s sale of the assets comes after a sharp rebound in its shares this year, despite the termination of talks about a takeover by Apollo Global Management.

Under Matt Moulding, its founder and chief executive, THG has told investors it is now focused on achieving profitability and cash generation.

A THG spokesman declined to comment.

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