End Clothing swung to a loss last year following a botched warehouse overhaul and a slowdown in demand that forced the business to cut its prices.
The streetwear retailer’s parent company Ashworth & Parker posted a pre-tax loss of £43m in the year to end of March, down from a £9m profit the year before, as sales slipped 3.8% to £212.7m, The Times reported.
The loss came mostly from impairments linked to the implementation of a new stock system in 2022, which End Clothing said last year had created logistical problems preventing it from shopping products and leading to a multimillion-pound write-off.
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Accounts filed on Companies House show consultancy costs incurred to fix the problems and costs related to removing old stock.
The retailer said it had taken steps to reduce its stock intake throughout the year to “de-risk” its inventory exposure. It closed the year with £62m of stock, down from £92.7m.
It added that softer consumer demand required the business to increase its promotional activity to shift stock.
End Clothing said that it was seeing “significant efficiencies and improved service levels” under its new warehouse system. “Inventory is now at very healthy levels and we are focusing fully on new season trading for SS25.”
The brand switched hands late last year, when private equity giant Apollo acquired the business in October from The Carlyle Group.
Apollo had helped to finance The Carlyle Group’s purchase of a majority stake in the brand back in 2021, which valued the business at £750m.
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