End Clothing has been acquired by Apollo in a strategic move.
- This acquisition follows three years after The Carlyle Group’s ownership.
- Apollo was instrumental in financing Carlyle’s initial purchase.
- End Clothing founders have stepped back post-transaction.
- The acquisition aims to reduce End Clothing’s debt and boost financial strength.
End Clothing, a noted luxury streetwear retailer, has transitioned under the ownership of Apollo, a prominent private equity firm. This comes three years after the company’s previous acquisition by The Carlyle Group, highlighting a continuing interest from major investment entities.
The initial acquisition by The Carlyle Group, which was valued at £750 million, saw Apollo playing a crucial role by financing the transaction. This strategic partnership laid the groundwork for Apollo’s current acquisition, illustrating a consistent engagement with End Clothing’s growth trajectory.
Following the new ownership agreement, co-founders Christiaan Ashworth and John Parker have stepped down from their roles on the board of directors. Their departure marks a significant shift in leadership as End Clothing embarks on its next chapter under Apollo’s guidance.
Chief Executive Parker Gundersen expressed optimism about the acquisition, emphasising that Apollo’s investment will be instrumental in reducing the company’s debt. This financial boost is expected to not only strengthen End Clothing’s balance sheet but also enhance cash flow, thereby supporting its future business plans.
The acquisition is set against a backdrop of financial challenges, with the retailer’s EBITDA experiencing a notable decline of 68% to £13 million in the year ending 31 March 2023. Despite this, sales figures saw a marginal increase from £219 million to £221.1 million, underpinning a resilient market presence amidst operational hurdles.
According to Parker Gundersen, the focus will remain on “curating the right products, deepening our connections in the community, and enhancing operations to remain a leading fashion destination.” This statement underscores End Clothing’s commitment to sustaining and growing its market presence despite current financial pressures.
This acquisition marks a significant strategic realignment for End Clothing, positioning it for future growth.
