The London-listed online health and beauty group THG has struck a deal to sell Zavvi, once one of Britain’s best-known entertainment retailers.

Sky News has learnt that THG has agreed the sale of its OnDemand division to its management team with financing from Gordon Brothers, the specialist retail advisory and investment firm.

City sources said the deal would be announced on Friday.

The newly independent company will continue to be a client of THG’s Ingenuity logistics arm, they added.

If confirmed, THG’s disposal of OnDemand would complete the sale of non-core assets announced earlier this year.

Be the first to get Breaking News

Install the Sky News app for free

It also sold ProBikeKit to Frasers Group, the high street group controlled by billionaire Mike Ashley.

The aggregate proceeds from the sale of the non-core assets is said to have been several million pounds.

NatWest chief apologises to Farage and promises account closure review

Virgin Money to shut almost a third of UK branches – is your local bank affected?

Average mortgage rates fall for the first time in months

The OnDemand division also includes I Want One Of Those, a gifting website, and Pop in a Box, which sells fast-moving consumer goods.

THG’s sale of the assets comes after a sharp rebound in its shares this year, despite the termination of talks about a takeover by Apollo Global Management.

Under Matt Moulding, its founder and chief executive, THG has told investors it is now focused on achieving profitability and cash generation.

A THG spokesman declined to comment.

Related posts:

Business confidence hits record high as firms see boost from pent-up demand British cyber security firm Darktrace confirms intention to float on London Stock Exchange Leap in business costs fails to dent ‘resurgent recovery’ in February TUC calls for raise of minimum wage to £15 an hour ‘to put an end to low-pay Britain’ Toyota sports car ad ‘condoned and encouraged unsafe or irresponsible driving’ Do the sums add up after chancellor gives only half the story? | Paul Kelso September financial curse strikes again – and beware of October economic horrors UK has lost credibility among investors and the ‘bond vigilantes’ serve as a warning Netflix declares itself de facto winner of streaming war Forecasts, though routinely wrong, are still worth listening to Cinepolis executive Acuna screened for top Cineworld job Cafe chain enters administration with 250 job losses but one outlet remains open