Fashion company Apparel Brands has secured a majority stake in Hype, enhancing its portfolio.
- Hype underwent a significant transformation under new leadership to streamline operations and inventory.
- The acquisition opens new B2B opportunities for Hype through Apparel Brands’ extensive network.
- Hype aims to expand its international presence, focusing on the GCC and Indian markets.
- This deal strengthens Apparel Brands’ position in the children and family fashion sector.
Apparel Brands has acquired a substantial 60% stake in the kidswear and streetwear brand Hype, marking an important chapter for both companies. Manchester-based Apparel Brands, established in 2017, is known for its streetwear labels Bench and Nicce and holds licensing agreements with Farah, Ed Hardy, Smith & Jones, and Seafolly.
Hype, which recently went through a reorganisation to improve efficiencies and adopt a linear stock model, has significantly reduced its inventory from over 1,500 to about 500 SKUs. This leaner approach has positioned Hype well for expansion under new ownership.
With this acquisition, Hype anticipates leveraging Apparel Brands’ diverse portfolio to access new B2B opportunities. This strategic move is expected to optimise their supply chain and offer greater brand-building capabilities. CEO Mike Thompson expressed optimism about exploiting these new economies of scale.
Hype has significant plans to extend its physical footprint, already collaborating with major retailers such as M&S, WHSmith, and Deichmann. It also partners with leading names like Next, John Lewis, and Zalando, aiming to bolster these connections further.
Internationally, Hype is setting its sights on the Gulf Cooperation Council and India, where there is a strong market interest. Peter Wood, Apparel Brands’ CEO, highlights the potential to reinforce Hype as a trusted name in kids and family fashion across various occasions.
The acquisition of Hype by Apparel Brands signifies a promising future, fostering growth and innovation in the fashion industry.
