Matthew Moulding’s THG has denied allegations that it is at the centre of a row with beauty suppliers over discounting.
A report by The Telegraph revealed that Dermalogica, a premium skin care name owned by Unilever, had curbed supplies of its products to the e-commerce giant over concerns that it was too heavily discounting products to hit sales targets.
Other beauty brands were also said to have held back on supplying to THG.
One inside source told the publication that Dermalogica was “not the only one”.
“Working with THG is not easy because of the high profit margins they need, but when they tear down your brand too, it’s not worth it,” they told the group.
However, a spokesperson for THG denied the findings to Cosmetics Business.
Unilever has been contacted for comment.
THG is the owner of pure play beauty e-tailers Cult Beauty, Lookfantastic and Dermstore.
Buyout looms
The spat comes during a turbulent period for Moulding’s business, which has seen shares slump more than 80% in the last year.
Now, private equity firms are thought to be circling the e-commerce company for a buyout.
THG also owns beauty brands ESPA, Dr Perricone and Illamasqua.
