Apparel Brands has acquired a 60% stake in Hype, signalling significant growth potential.
- The acquisition allows Apparel Brands access to Hype’s established position in youth fashion.
- Hype undergoes operational improvements, reducing its inventory and enhancing efficiency.
- Plans for expanding Hype’s international B2B presence are underway.
- Key retail partnerships with major UK stores are set to strengthen Hype’s market reach.
In a strategic move, Manchester-based Apparel Brands has secured a 60% stake in Leicester’s renowned kidswear and streetwear brand, Hype. This acquisition, which remains financially undisclosed, presents an opportunity for Apparel Brands to tap into Hype’s strong foothold in the youth fashion market.
Apparel Brands, established in 2017 and supported by True Capital since 2023, already presides over several streetwear labels, including Bench and Nicce, and holds licences for brands such as Farah and Ed Hardy. The recent acquisition aligns with their strategy to expand their market influence within the fashion industry.
Hype, having undergone a significant ‘reset’ in its operations over the past year, has improved its efficiency by implementing a linear stock model, thereby reducing its stock-keeping units (SKUs) from over 1,500 to approximately 500. This streamlining move has evidently placed the brand in a position conducive to growth.
Under the new ownership, Hype is poised to leverage Apparel Brands’ extensive portfolio, promising enhanced opportunities through economies of scale and supply chain optimisation. This partnership is expected to amplify their leverage and brand-building capacities.
Aiming for a two-thirds pre-book and one-third variable order book model, Hype plans to drive its international business-to-business (B2B) portfolio, particularly targeting the Gulf Cooperation Council and India. Their current partnerships, which include over 60 stores across M&S, WHSmith, and Deichmann, as well as collaborations with Next, John Lewis, and Zalando, underpin these aspirations.
Peter Wood, CEO of Apparel Brands, expressed optimism regarding the acquisition, noting Hype’s long-standing impact in youth fashion. He highlighted the brand’s potential to remain a reliable choice for both everyday and special occasion wear, marking a forward-looking step in Apparel Brands’ journey to becoming a leading name for children and families.
The acquisition marks a pivotal development for both Apparel Brands and Hype, setting a robust trajectory for future expansion.
