London-based Sparta Capital, an activist hedge fund founded by US firm Elliott Advisors, has become the second activist investment firm too take a stake in troubled online retailer THG, according to a report by the Sunday Times.

London-based Sparta Capital, an activist hedge fund founded by US firm Elliott Advisors, has become the second activist investment firm to take a stake in troubled online retailer THG, according to a report by the Sunday Times.

Sparta reportedly acquired its stake after THG's share price tumbled due to concerns over governance and tough trading conditions. Kelso meanwhile, an activist investor led by City veteran John Goold is believed to be on the verge of going public with its recommendations for THG after declaring a 0.4% stake in the business in January.

Items on Kelso's 'wish-list' include moving the company's shares to the premium segment of the London Stock Exchange's main market, but that requires THG founder and CEO Matt Moulding giving up his golden share, which gives him the right to veto hostile takeover bids, something he agreed to almost 18 months ago but has yet to do.