Luxury streetwear retailer End Clothing is now under the control of private equity firm Apollo.
- This transition occurs three years post-acquisition by The Carlyle Group, which valued the business at £750m.
- End Clothing lenders and shareholders have agreed to recapitalise, leading to a new ownership structure.
- Founders Christiaan Ashworth and John Douglas Parker, along with The Carlyle Group, have divested their stakes in the business.
- CEO Parker Gundersen emphasizes the new ownership will reduce debt and focus on strategic growth.
End Clothing, originally founded in Newcastle as a menswear independent in 2005, has experienced a significant change in ownership. Private equity firm Apollo has taken control of the company as End Clothing approaches its 20th anniversary. Three years prior, The Carlyle Group had acquired a majority stake in the retailer, aided by Apollo’s financing, valuing the business at £750 million.
Lenders and shareholders of End Clothing have reached a new agreement aimed at recapitalising the business. This transition comes as the co-founders, Christiaan Ashworth and John Douglas Parker, along with The Carlyle Group, exit their ownership roles. The change marks a pivotal moment for End Clothing, as it seeks to streamline its operations and strengthen its financial position.
Parker Gundersen, the CEO of End Clothing, has outlined the benefits of this transaction. He stated that the investment from Apollo will decrease the company’s debt and enhance its balance sheet and forward cash flow. “This transaction will allow us to reinvest in the team and execute our business plans,” Gundersen remarked, underlining their focus on maintaining End Clothing’s status as a leading fashion destination.
The retailer, which expanded into womenswear in 2021, boasts a diverse product range that includes luxury and premium brands such as John Smedley, Jacquemus, Marine Serre, Shrimps, and Moncler. Additionally, it offers sportswear and streetwear staples like Adidas, Norse Projects, Stone Island, and Carhartt WIP.
Recent financial figures reveal that for the year ending 31 March 2023, End Clothing’s turnover slightly increased to £221.1 million from £219 million in the previous year. However, gross profit fell by 16.8% to £67.7 million. EBITDA, excluding exceptional items, was reported at £28.1 million, reflecting a 30.8% year-on-year decline. Including the costs associated with a new stock system, EBITDA dropped significantly to £13 million from the previous year’s £40.6 million.
As End Clothing finalises its 20th anniversary celebration plans, CEO Gundersen highlights upcoming marketing initiatives and exclusive collaborations with long-standing brand partners. Additionally, the retailer has launched its in-house clothing and accessories label, E by End, featuring collaborations with well-known brands like Levi’s, Champion, and New Era. These are exclusively available across End Clothing’s six stores and online platform.
According to Gundersen, the upcoming autumn/winter trading period shows positive prospects due to healthy inventory levels and an increased mix of new seasonal products. Enhancements in buying and merchandising capabilities also contribute to this optimistic outlook.
End Clothing’s strategic ownership change and planned initiatives position it for future growth as it approaches its anniversary.
