End Clothing, a renowned luxury streetwear brand, has been acquired by Apollo, a major private equity firm.
- This acquisition follows a previous ownership by The Carlyle Group, who bought the brand three years ago.
- The purchase aims to recapitalise End Clothing amidst declining financial performance.
- Co-founders Christiaan Ashworth and John Parker have stepped back post-acquisition.
- Apollo’s investment is expected to bolster End Clothing’s financial health and strategic growth.
In a significant development, End Clothing, a key player in the luxury streetwear market, has been acquired by private equity giant Apollo. This acquisition comes after The Carlyle Group’s ownership, which commenced three years ago. The move is a strategic decision to address the luxury brand’s financial challenges, as reported by Drapers.
The acquisition agreement signifies a crucial step towards recapitalisation for End Clothing. The brand has been grappling with a substantial decrease in EBITDA, which fell by 68% to £13 million as of 31 March 2023. This decline is partly attributed to the implementation costs of a new stock system, despite a slight increase in sales from £219 million to £221.1 million.
Following the acquisition, co-founders Christiaan Ashworth and John Parker have decided to step back from the board of directors. Their departure marks a new chapter for the company as it aims to navigate and thrive in a competitive retail market.
Apollo’s financing prowess, which previously supported The Carlyle Group’s acquisition of a majority stake in End Clothing at a valuation of £750 million, is expected to play a pivotal role in strengthening the brand’s financial position. Chief Executive Parker Gundersen stated that this investment would aid in reducing debt, thus enhancing the balance sheet and cash flow, crucial for the brand’s future evolution.
Gundersen further elaborated that the transaction allows for reinvestment into the team and the execution of business plans, with a focused approach on curating products and enhancing community connections. This forward-thinking strategy aims to maintain End Clothing’s status as a leading fashion destination.
The acquisition by Apollo is set to steer End Clothing towards a more stable and prosperous future.
