Apparel Brands has acquired a majority stake in Hype, a renowned Leicester-based kidswear and streetwear brand, marking a significant expansion move for the Manchester-based company.
- The acquisition involves a 60% stake in Hype, with potential plans to purchase the remaining shares from current owner Sarjan Dulai.
- Hype has undergone substantial restructuring and is prepared to expand under Apparel Brands’ ownership with a more efficient business model.
- The partnership is set to enhance Hype’s international B2B sales and supply chain, leveraging Apparel Brands’ portfolio.
- Apparel Brands aims to strengthen Hype’s position in the kids and family fashion sector in forthcoming years.
Apparel Brands, a company established in 2017 and backed by True Capital since 2023, has taken a 60% stake in Hype, a popular kidswear and streetwear brand based in Leicester. This strategic acquisition occurred 18 months after Sarjan Dulai purchased Hype as part of a pre-pack administration. The deal includes an option for Apparel Brands to buy the remaining 40% of the company shares from Dulai.
Hype has been on a transformative journey, as explained by its CEO, Mike Thompson. Over the last year, the brand has been in a ‘reset’ phase, focusing on business efficiency and moving towards a more streamlined stock model. The company has cut its inventory significantly from over 1,500 stock-keeping units (SKUs) last April to approximately 500, resulting in improved performance. With these changes, Hype is now ready to take advantage of new opportunities presented by its partnership with Apparel Brands.
This acquisition opens up significant B2B potential for Hype, facilitated by the brand synergies offered by Apparel Brands’ extensive portfolio, which includes streetwear labels like Bench and Nicce, and sales licenses for brands like Farah and Ed Hardy. According to Thompson, the collaboration offers ‘supply chain optimization through economies of scale,’ which is expected to enhance operational efficiencies across both companies.
Hype plans to increase its physical footprint in retail through key wholesale accounts. Currently, it is present in 60 M&S stores, 100 WHSmith locations, and 120 Deichmann stores. The brand also has alliances with third-party retailers like Next, John Lewis, and Zalando, providing a solid foundation for its anticipated expansion.
Looking forward, Hype aims to drive its international B2B portfolio, with specific interest in markets like the Gulf Cooperation Council and India, where there is a growing demand for its products. Peter Wood, founder and CEO of Apparel Brands, sees a promising path for Hype to become a leading name in youth fashion, catering especially to children and families. This acquisition is positioned to amplify Hype’s influence in the kids and family fashion industry.
The acquisition by Apparel Brands sets a promising stage for Hype’s growth in the global fashion market.
