End Clothing has changed hands from The Carlyle Group to Apollo, a leading private equity firm.
- The acquisition follows an agreement by End Clothing’s lenders and shareholders to recapitalize the brand.
- Apollo had previously financed Carlyle’s acquisition, marking a continued partnership with End Clothing.
- Co-founders Christiaan Ashworth and John Parker have stepped back from their directorial roles post-acquisition.
- CEO Parker Gundersen emphasizes the strategic benefits of Apollo’s investment in reducing debt and bolstering growth.
End Clothing has been acquired by private equity giant Apollo, shifting ownership from The Carlyle Group three years after its initial purchase. This move comes as the luxury streetwear retailer’s lenders and shareholders have pushed forward with an agreement to recapitalize the business.
Apollo, which facilitated Carlyle’s acquisition of a majority stake in End Clothing in 2021, reenters the picture with this new acquisition. At the time of the 2021 transaction, the business was valued at £750 million. The strategic continuation of this partnership underscores Apollo’s commitment to the brand’s potential.
In a significant shift in the company’s leadership, co-founders Christiaan Ashworth and John Parker have exited their roles on the board of directors. This change signals a new phase for the business as it transitions under Apollo’s guidance.
Parker Gundersen, the CEO of End Clothing, noted the strategic benefits of the investment from Apollo, particularly in terms of financial health. He stated, “The investment from Apollo will help reduce the business’ debt, allowing it to further strengthen its balance sheet and forward cash flow as we look to reach our next stage of evolution as a brand.”
End Clothing has faced financial challenges, as reflected in the 68% drop in its EBITDA to £13 million for the fiscal year ending March 31, 2023. Despite this, sales showed a slight increase, rising from £219 million to £221.1 million, demonstrating a capacity for resilience amidst operational changes, such as the implementation of a new stock system.
Apollo’s acquisition paves the way for End Clothing to leverage strategic investment for future growth and operational enhancement.
