End Clothing has been acquired by Apollo, a significant player in private equity.
- This acquisition follows a previous purchase by The Carlyle Group in 2021.
- The transaction supports a recapitalisation agreement reached by lenders and shareholders.
- End Clothing’s co-founders have exited following the acquisition.
- The acquisition aims to alleviate the retailer’s debt and facilitate growth.
The acquisition of End Clothing by private equity firm Apollo marks a notable change in ownership, occurring three years after The Carlyle Group’s purchase of the business. This strategic move is part of an agreement facilitated with the fashion retailer’s lenders and shareholders to recapitalise the company, reflecting a concerted effort to stabilise its financial structure.
In 2021, Apollo played a crucial role in financing The Carlyle Group’s acquisition of a majority stake in End Clothing, a transaction that valued the company at £750 million. This investment laid the groundwork for Apollo’s current takeover, underscoring its interest in securing and enhancing the retailer’s market position.
Following this latest transaction, End Clothing’s co-founders Christiaan Ashworth and John Parker have relinquished their roles within the company. Their departure signifies a potential shift in strategic direction as the retailer adapts to new ownership and aims for future growth.
The company’s chief executive, Parker Gundersen, expressed that Apollo’s investment would reduce End Clothing’s debt levels, thereby strengthening the business’s balance sheet and cash flow. He emphasised the brand’s continued focus on product curation, community engagement, and operational enhancement, highlighting the strategic goals set forth under the new ownership.
Operational challenges, such as the expenses from implementing a new stock system, have significantly impacted the retailer’s financial performance, with EBITDA falling by 68% to £13 million by the end of March 2023. Despite these difficulties, sales have exhibited a marginal increase from £219 million to £221.1 million, suggesting a resilient market demand for End Clothing’s offerings even amidst internal restructuring.
Apollo’s acquisition of End Clothing represents a pivotal development in the retailer’s ongoing adaptation and financial restructuring.
