End Clothing, a renowned luxury streetwear retailer, has been acquired by Apollo, a leading private equity firm.
- This transaction occurs three years after The Carlyle Group’s acquisition of End Clothing, during which Apollo was involved in the initial financing.
- The agreement comes amidst efforts by End Clothing’s lenders and shareholders to recapitalise the business.
- Co-founders Christiaan Ashworth and John Parker have stepped back from the company following the acquisition.
- The deal aims to reduce debt and strengthen End Clothing’s financial position, as stated by CEO Parker Gundersen.
End Clothing, recognised for its luxury streetwear offerings, has been purchased by Apollo, a prominent private equity firm. This acquisition takes place three years after the previous ownership by The Carlyle Group, reflecting significant strategic movements within the financial structure of the brand.
The Carlyle Group’s initial acquisition of End Clothing was financed with assistance from Apollo, valuing the company at £750 million in 2021. The recent agreement to take over End Clothing results from careful negotiations among the company’s lenders and shareholders, laying out a plan to recapitalise and stabilise the business amidst financial challenges.
With the finalisation of this acquisition, Christiaan Ashworth and John Parker, co-founders of End Clothing, have relinquished their roles on the board, marking a new phase in the company’s leadership.
Parker Gundersen, CEO of End Clothing, expressed confidence in the backing from Apollo, highlighting the potential to reduce existing debt and enhance cash flow. He stated, ‘This transaction will allow us to reinvest in the team and execute our business plans. Our focus remains on curating the right products, deepening our connections in the community and enhancing operations, to remain a leading fashion destination.’
Despite challenges, including a 68% drop in EBITDA to £13 million partly due to a new stock system implementation, sales marginally increased from £219 million to £221.1 million. The renewed financial direction under Apollo’s ownership is expected to revitalise the brand’s market position.
The acquisition by Apollo marks a pivotal transition for End Clothing, setting a strategic course for future growth.
