End Clothing undergoes significant ownership change as Apollo takes control, marking a new era.
- Apollo Global Management has acquired End Clothing from The Carlyle Group, concluding a recapitalisation agreement.
- The transaction reduces End Clothing’s debt and positions it for further growth and development.
- CEO Parker Gundersen emphasises reinvestment in the team and strategic business execution.
- End Clothing prepares for its 20th anniversary with exclusive collaborations and marketing initiatives.
End Clothing, the luxury streetwear retailer founded in Newcastle in 2005, is set to embark on a new chapter following a significant change in ownership. Private equity firm Apollo Global Management has officially taken control of the retailer, marking another transition in the company’s ownership history, revealed by sources at Drapers.
The recapitalisation agreement finalised between End Clothing’s lenders and shareholders positions Apollo as the new majority stakeholder. This transition comes three years after The Carlyle Group initially acquired a controlling interest in the company in 2021, a deal valued at £750 million. With this new development, The Carlyle Group and End’s co-founders, Christiaan Ashworth and John Douglas Parker, have fully exited their roles, paving the way for a fresh strategic direction.
CEO Parker Gundersen commented on the transaction, indicating that it would allow End Clothing to reduce its debt significantly through investment from Apollo. “This transaction will result in a strengthened balance sheet and improved cash flow, propelling us towards our next stage of evolution as a brand,” Gundersen stated. He further elaborated that the focus would be on reinvesting in the workforce and executing business plans that enhance their market standing.
End Clothing has expanded its product offerings over the years, venturing into womenswear and stocking high-end luxury brands alongside popular streetwear labels. Recent financial performance for the year ending 31 March 2023 indicated a slight increase in turnover to £221.1 million from £219 million, though profit margins experienced a decline. Specifically, gross profit decreased by 16.8% to £67.7 million, and EBITDA pre-exceptional items dipped by 30.8% to £28.1 million. This was further impacted by a substantial investment in a new stock management system, reducing EBITDA to £13 million.
As the company approaches its 20th anniversary, exciting plans are underway to mark this milestone. Gundersen disclosed that the celebrations would commence in early 2025, featuring a series of exclusive product collaborations with long-time brand partners, though specific details remain under wraps. The retailer has also recently ventured into the collaboration space with its own in-house label, E by End.
Indicators of positive trading trends for autumn/winter 2024 have emerged, demonstrating healthy inventory levels and a higher mix of new seasonal products. These promising signs follow enhancements in End Clothing’s buying and merchandising functions, potentially forecasting a brighter financial outlook moving forward.
As End Clothing transitions to new ownership under Apollo, the focus on innovation and strategic growth strategies positions the retailer for future success.
