Apollo Global Management’s acquisition of End Clothing marks a significant change for the luxury streetwear retailer.
- End Clothing’s former owners, The Carlyle Group and its co-founders, have completely exited the business.
- CEO Parker Gundersen emphasizes the transaction’s role in strengthening the company’s finances and strategic growth.
- End has seen a dip in profit margins, with plans to tackle these through strategic reinvestment and curated collaborations.
- New marketing and product initiatives are expected as End Clothing prepares for its 20th anniversary.
Apollo Global Management has taken a decisive step in the luxury streetwear sector by acquiring End Clothing. This strategic move comes just three years after The Carlyle Group purchased the retailer, valued at £750 million at the time. The shift in ownership is expected to usher in a new phase for End, as it redirects its efforts towards financial stability and brand evolution.
The departure of The Carlyle Group, along with End’s co-founders Christiaan Ashworth and John Douglas Parker, marks a clean slate for the retailer. CEO Parker Gundersen confirmed that Apollo’s investment will help reduce existing debts, enhancing the company’s balance sheet and cash flow to support its next growth phase. Gundersen highlighted that the business intends to focus on reinforcing team capabilities and adhering to its strategic business plans.
End Clothing, known for its premium and luxury brand offerings, reported slight growth in turnover to £221.1 million for the year ending March 2023, but faced challenges with a 16.8% decline in gross profit. The EBITDA figures reflect an even starker decrease, dropping from £40.6 million to £13 million due to new stock system costs, which amplifies the urgency for operational improvements.
As End looks forward to its 20th anniversary celebrations, the retailer is planning a slate of marketing activities and product collaborations, underlining its commitment to staying at the forefront of the fashion domain. This follows its recent collaboration with in-house label E by End and brand partnerships with industry stalwarts such as Levi’s and Champion.
Looking ahead, CEO Parker Gundersen expressed optimism about the current trading period, fueled by robust inventory levels and an influx of new season products. These developments are anticipated to align with End’s enhanced buying and merchandising processes, further positioning the retailer as a leader in the competitive fashion landscape.
The acquisition by Apollo heralds a transformative period for End Clothing as it navigates financial challenges and strategizes for future growth.
