THG in talks to buy City A.M.
A source told Sky news that THG was expected to pay ‘a small seven-figure sum’ for City A.M.'s assets including its brand and website
Online beauty retailer THG is reportedly in advanced talks with London business newspaper, City A.M. to acquire it through a pre-pack administration, according to Sky News.
The news comes after it was revealed that City A.M. is on the brink of administration after failed attempts to find a buyer in the wake of the pandemic which saw its physical readership dwindle.
Sky News reported that THG, which owns brands such as Cult Beauty and Look Fantastic, is negotiating the purchase of City A.M. with accountancy firm BDO, which is on standby to handle its insolvency.
A source told Sky news that THG was expected to pay “a small seven-figure sum” for City A.M.’s assets including its brand and website and also meet the firm’s July payroll.
People close to the company told Sky News that the deal would provide THG with a series of commercial opportunities.
They said that the ability to provide clients of THG’s Ingenuity digital brand-building and e-commerce platform, which includes consumer goods giants Coca-Cola, Kraft Heinz, Mondelez, and Nestle, greater access to a financially literate audience through City A.M.’s readership, is one of the deal’s most important driving forces.
THG also intends to revamp City A.M.’s technological reader interface by introducing an app for the publication and also plans to continue printing City A.M.
An insider insisted, however, that the newspaper would continue to operate with editorial independence.
Sky stated that according to City sources, the move from THG could be announced as soon as Wednesday (26 July) afternoon.
THG declined to comment.
