End Clothing sees a significant shift in ownership as private equity firm Apollo takes control, succeeding The Carlyle Group.
- The agreement finalised by End Clothing’s shareholders and lenders aims to recapitalise the business and reduce debt.
- CEO Parker Gundersen highlights plans to strengthen the brand’s financial health and community ties.
- End Clothing, founded in 2005, expanded into womenswear and stocks various premium brands.
- Financial performance shows mixed results, with a slight increase in turnover but a decline in gross profit and EBITDA.
Private equity firm Apollo has assumed control of End Clothing, a development occurring three years following The Carlyle Group’s acquisition of a majority stake in the retailer. This transition, finalised by End Clothing’s shareholders and lenders, serves as a strategic move to recapitalise the business amidst evolving market dynamics.
The transaction’s financial implications are underscored by CEO Parker Gundersen’s comments, indicating that Apollo’s investment will assist in reducing End Clothing’s debt and bolster its cash flow. “This transaction will allow us to reinvest in the team and execute our business plans,” Gundersen asserted, emphasising their goal to solidify the brand’s stature as a leading fashion destination.
Originating as a menswear independent in Newcastle in 2005, End Clothing has grown substantially, venturing into womenswear in 2021. The retailer is renowned for its curation of luxury and premium brands such as John Smedley and Jacquemus, alongside sportswear and streetwear icons like Adidas and Carhartt WIP.
Financially, End Clothing has experienced varied results. The turnover for the year ending 31 March 2023 increased marginally to £221.1 million, up from £219 million the previous year. However, this period also marked a significant drop in gross profit, seeing a 16.8% decrease to £67.7 million. EBITDA before exceptional items fell by 30.8%, and including stock system costs, it plummeted to £13 million, a stark contrast to the previous year’s £40.6 million.
Events on the horizon include End Clothing’s 20th anniversary celebrations set for 2025, anticipated to feature marketing activations and exclusive collaborations. Recent ventures into in-house labels, such as E by End, demonstrate the retailer’s innovation in product offerings, co-branding with Levis, Champion, and New Era, available exclusively at its six stores and online.
The retailer’s autumn/winter 24 trading shows promise, with Gundersen noting “positive signs” resulting from enhanced buying and merchandising capabilities, indicating a strategic readiness to tackle forthcoming challenges.
The ownership transition to Apollo marks a pivotal juncture for End Clothing, positioning it strategically for future growth.
