Acquisition Leads to Cancelled Orders for Premium Brands
- Coggles cancels forward orders with some brands after Frasers Group acquisition
- THG’s luxury division generated £43m in sales last year
- Frasers Group acquires Coggles and sister site The Hut
Coggles has cancelled forward orders with some of the brands it stocks following Frasers Group’s acquisition. The move affects premium and luxury brands stocked on Coggles and sister site The Hut, which were also acquired by THG. Orders for AW24 and SS25 have been cancelled, according to Drapers. In an email sent to brands, THG stated: ‘Following the announcement that THG is selling its luxury websites to the Frasers Group, we find it necessary to make cancellations. Please consider this email as formal notice to cancel all outstanding commitments for autumn/winter 2024 and spring/summer 2025 with immediate effect.’ One brand commented: ‘I can only assume that [Frasers Group is] buying [Coggles] to shut it down to increase its market share. You can’t have a business with no stock.’ THG’s luxury division, which also includes The Hut, MyBag and Allsole, generated about £43m in sales last year.
Factuality Level: 7
Factuality Justification: The article provides accurate information about Coggles cancelling forward orders with some of its brands after being acquired by Frasers Group and includes quotes from THG’s email to the brands. However, it contains some speculation in the statement ‘You can only assume that [Frasers Group] is buying [Coggles] to shut it down to increase its market share.’ The article also lacks details about the cost-of-living crisis and its impact on brands.
Noise Level: 6
Noise Justification: The article provides relevant information about Coggles cancelling orders with some of its brands after being acquired by Frasers Group, but it also contains some speculative statements and unrelated information about the cost-of-living crisis. It could benefit from more focus on the impact of the acquisition on the affected brands and the industry as a whole.
Financial Relevance: Yes
Financial Markets Impacted: Frasers Group and THG’s acquisition of Coggles and its impact on the luxury fashion market
Financial Rating Justification: The article discusses a business acquisition in the fashion retail industry, which can have financial implications for both Frasers Group and THG as well as the brands stocked by Coggles. It also mentions the cancellation of forward orders, which could affect the supply chain and inventory management of these brands.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
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