Apollo Global has acquired End Clothing in a strategic move, three years after Carlyle Group’s initial purchase.
- The acquisition follows a recapitalisation agreement among End Clothing’s lenders and shareholders.
- Apollo had previously supported Carlyle’s acquisition of End Clothing, then valued at £750 million.
- End Clothing’s founders, Christiaan Ashworth and John Parker, have exited the board post-acquisition.
- CEO Parker Gundersen anticipates debt reduction and operational reinvestment following the transaction.
Apollo Global has recently acquired End Clothing, marking a significant strategic move in the retail industry. This acquisition comes three years after The Carlyle Group’s initial purchase, illustrating a continued interest in the luxury streetwear sector. The transaction follows a pivotal recapitalisation agreement among End Clothing’s lenders and shareholders, as reported by industry sources.
Previously, Apollo had played a crucial role in The Carlyle Group’s acquisition of a majority stake in End Clothing in 2021. At that time, the business was valued at approximately £750 million, showcasing its strong market position and potential for growth.
In the wake of the acquisition, End Clothing’s co-founders, Christiaan Ashworth and John Parker, have stepped down from their positions on the board of directors. Their departure signals a new chapter in the company’s governance and strategic direction.
CEO Parker Gundersen has expressed optimism regarding the outcome of this transaction. According to Gundersen, the involvement of Apollo is expected to alleviate the company’s debt burden, thus strengthening the balance sheet and enhancing cash flow. This financial reinforcement aims to support End Clothing as it embarks on its next growth phase.
Furthermore, Gundersen emphasised the strategic benefits of reinvestment in the business’s operations and team. The focus remains on curating a well-selected range of products, reinforcing community connections, and enhancing operational efficiency, with the ultimate goal of maintaining End Clothing’s status as a leading fashion destination.
Recent financial metrics reveal a drop in the retailer’s EBITDA by 68% to £13 million for the year ending 31 March 2023. Despite this decline, sales figures saw a slight increase, rising from £219 million to £221.1 million. The introduction of a new stock system was cited as a contributory factor to the reduced earnings.
The acquisition by Apollo marks a transformational phase for End Clothing, with a focus on financial stability and strategic growth.
