Apollo Global Management has acquired luxury retailer End Clothing as it approaches its 20th anniversary, marking a strategic shift.
- Three years after The Carlyle Group’s acquisition, Apollo now takes control, aiming to bolster End Clothing’s financial stability.
- End Clothing plans to focus on reinvestment and operational enhancements, aspiring to maintain its status as a leading fashion destination.
- Founded in Newcastle, the retailer has expanded its range to include womenswear and premium brands.
- With financial figures revealing mixed results, the company is gearing up for its anniversary with collaborations and product launches.
Apollo Global Management has acquired End Clothing, a move that signifies a critical transition as the luxury streetwear retailer nears its 20th anniversary. This change in ownership comes three years after The Carlyle Group’s acquisition, which initially valued the company at £750 million. Apollo’s involvement from the start indicates a longstanding interest in End’s potential and viability.
The new ownership aims to enhance End Clothing’s financial position. According to CEO Parker Gundersen, the change is designed to reduce debt through strategic investment, strengthening the balance sheet and ensuring forward cash flow. Gundersen elaborated, “This transaction will allow us to reinvest in the team and execute our business plans.”
The retailer, established in Newcastle in 2005, initially focused on menswear but expanded into womenswear and other premium categories in 2021. It is known for its curated selection of luxury and streetwear brands, including John Smedley, Jacquemus, and Adidas, among others. End Clothing has become a prominent name in fashion retail, recognised for its diverse product range and innovative branding.
End Clothing’s financial health presents a mixed picture. Turnover figures for the year ending March 2023 saw a slight increase to £221.1 million from the previous year’s £219 million. However, gross profit saw a significant decline of 16.8% to £67.7 million. EBITDA before exceptional items was £28.1 million, marking a 30.8% year-on-year decline, while inclusive of new stock system costs, EBITDA fell dramatically to £13 million.
As End Clothing prepares to celebrate its 20th anniversary, the company is planning extensive marketing initiatives. CEO Gundersen highlighted upcoming “exclusive product collaborations” with long-standing brand partners. The launch of the in-house label ‘E by End’ reflects a strategic move towards brand diversification, with notable partnerships like Levi’s and Champion being featured exclusively in their stores and website.
The retailer’s autumn/winter 2024 trading indicates “positive signs,” as Gundersen noted “healthy inventory levels and a higher mix of new season products” benefiting from improvements in buying and merchandising. Such operational enhancements are part of End Clothing’s ongoing strategy to remain competitive and influential in the luxury fashion sector.
Ownership changes at End Clothing mark a new chapter with Apollo, aiming for financial stability and growth as the company approaches a significant milestone.
