The one certainty in an uncertain world is that Matthew Moulding had a better night鈥檚 sleep yesterday than he did last Tuesday.
Last week the CEO and founder of North West-based unicorn THG had seen the online retailer鈥檚 share price nosedive after a capital markets day turned into a PR and聽financial聽disaster.
Fast forward to 7am on Monday and THG told the markets that Moulding would be giving up his 鈥榮pecial share鈥� rights.
Widely referred to as a 鈥榞olden share鈥� it allowed him to potentially block a hostile takeover and was one of the reasons why he got so much investor heat last week.
THG鈥檚 statement to the market continued: 鈥淭HG’s board intends to undertake a further review of its corporate governance arrangements in conjunction with its application to step-up to a premium listing.
Moulding added: 鈥淎fter the anniversary of our 2020 listing we feel that the time is right to make this next step and apply to the premium segment in 2022, thereby continuing the development of THG as we endeavour to deliver our strategy for the benefit of our shareholders, key stakeholders and employees.鈥�
The response from the market to the announcement was emphatic as shares climbed more than 20 per cent to 348.80.
The figure is still well short of last year鈥檚 flotation price of 500p a share but it is a significant step forward and sends out the message that Moulding is listening to the investor concerns over the (lack of adequate) corporate governance.
Last week I wrote a blog about the challenges at THG and canvassed the views of seasoned observers.
One leading figure told me that Moulding鈥檚 share arrangement, together with his decision to operate as both the CEO and executive chair, hadn鈥檛 gone down well with investors, especially as the share price plummeted.
Yesterday鈥檚 announcement puts the golden share argument to bed but it still seems inevitable that more announcements around stronger corporate governance will follow.
However the response to the blog was also telling with a number of respected figures coming to the defence of Moulding and the North West unicorn.
老九品茶 journalist-turned PR Chris Barry wrote: 鈥淚鈥檓 sure he鈥檒l be smarting over the events of the last two weeks, but determined to learn from the experience and show his critics are wrong in the best way, by continuing to deliver spectacular growth in the business.鈥�
Barry Nightingale, who has held senior CFO and senior leadership roles at the likes of Monarch Airlines, Betfred and webuyanycar.com urged Moulding to 鈥渟tick to your values and you will win over your investor marketplace鈥�.
He added: 鈥淏y the way, this would not have happened in the US market, where entrepreneurs are properly backed.鈥�
Yesterday was a better day for THG but serious questions still remain about the future direction of the company.
The company has grown through a strategy of aggressive acquisition but is this taking them away from their core business?
Jamie Watson, managing partner of digital marketing agency Pixel8, thinks so.
鈥淓verything they鈥檝e touched has worked including the initial float but unfortunately the complexity of the most recent decisions has left shareholders running for cover,鈥� he wrote.
“THG have been ill advised and I really hope that they can put their hands up, retract the latest financial restructuring and focus on what they do best – online shopkeeping.鈥�