// Hut Group beauty suppliers limit flow of stock to retailer
// THG would implement strong discounts on beauty products

Hut Group beauty suppliers are said to be limiting the flow of stock to the online retailer amid growing fears it will implement steep discounts to meet its sales targets.

Dermalogica is among the beauty brands that have taken steps to protect their prices by cutting THG supplies.

The dispute arose after THG owner Matthew Molding braced for private equity bidders to grab THG’s bombed share price.

READ MORE: The Hut Group surrounded by private equity giants

Bankers at Barclays and Jefferies are advising THG on a possible bid defense.

THG owns other beauty brands such as Lookfantastic, Dermstore and Cultbeauty.

The Unilever-led rebellion signals that the growing pressure THG and Molding have been under since their IPO in 2020 has now extended to its supply chain, The telegraph reported.

THG was recently forced to lower its growth forecast last month due to slower sales expansion.

He was also accused of overestimating the potential of Ingenuity, its technology services business, which aims to provide online retail capabilities to third parties.

Beauty is at the heart of THG’s current business, accounting for more than half of sales.

THG said it is working with its partners to ensure it has the best products available.

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