British luxury streetwear retailer End Clothing has reported a significant financial downturn, posting a pre-tax loss of £43 million in the year ending March 2023, marking a dramatic shift from its £9 million profit in the previous year.
The company’s struggles stem primarily from complications with its automated fulfilment system implementation in 2022, which created substantial logistical challenges and led to shipping disruptions. The situation necessitated a considerable stock write-off and additional consultancy costs to address the operational issues.
The retailer’s turnover declined by 3.8 per cent to £212.7 million, whilst inventory levels were strategically reduced from £92.7 million to £62 million. Market conditions forced End Clothing to increase promotional activities, reflecting the broader challenges faced by the £350 billion global luxury sector, which has experienced weakened demand across key markets including China, North America, Britain, and Europe.
Under new ownership by New York-based private equity firm Apollo, which acquired the business from Carlyle Group, End Clothing has undergone significant leadership changes. Company founders Christiaan Ashworth and John Parker have stepped back from their directorial roles, with Parker Gundersen, former president of retail operations at LVMH’s travel retail subsidiary DFS Group, now leading as chief executive.
Despite current challenges, the company maintains that its warehouse system has now been fully integrated, reporting improved service levels and efficiency. End Clothing continues to operate its extensive network, partnering with over 500 designers and brands, including Adidas and Moncler, whilst maintaining its presence in key UK locations such as Newcastle, London, Glasgow, and Manchester.
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