Leading Sportswear Brand/Retailer & Gym Operator

Offer Deadline:

SOLD

Project Fit

Hilco is delighted to offer for sale the business and assets of a leading sportswear brand/omnichannel retailer and gym operator (the “Company”). Established in the last decade, the Company has rapidly evolved into a premier fitness brand, catering to diverse athletic activities such as CrossFit, weightlifting, running, and general fitness. The Company’s commitment to delivering high-quality products from renowned fitness brands has positioned it as a key player in the industry.

In addition to the Company’s product offering, which includes exclusive collaborations with industry titans such as Nike, Reebok and Nobull and its own-brand collections, the Company hosts events, sponsorships, and collaborations with athletes and influencers, fostering a vibrant fitness culture surrounding the brand. An omnichannel retailer, the Company trades via its popular e-commerce store but also operates a well-positioned London-based gym and physical store, with the site serving as a physical hub where fitness lovers can meet and experience its products firsthand.

Despite the challenging macroeconomic conditions, the Company has maintained a strong global presence and market position, with key strategies including foreign expansion via strategic pop-up stores at major events, including a collaboration store in Paris and multiple activations across the US, along with a sharp focus on maximising sales via its sleek and popular e-commerce platform, which ensured substantial year-on-year growth and has consistently generated several million pounds in revenue. Testament to the strength of the brand, the Company is one of only a select number of Nike’s chosen global retail partners, an enviable endorsement from an industry giant. Evidence of its popularity and traction is that the Company boasts an impressive 433k followers across its prominent social media platforms. The Company has also amassed a sizeable database of over 367k customers, with a repeat purchase rate of over 60%.

Already gaining momentum with its exciting product lines, the Company is preparing to unveil an exciting array of new own-brand products and a new range of third-party brand products following its recent success in securing an exclusive deal with another key market player, soon to hit the market. Additionally, with strategic global distribution plans, the Company is well-positioned to bolster its international presence and is gearing up to expand, solidifying its prominent market position.

This acquisition opportunity invites you to become part of an innovative brand that has already secured a strong position in the market, with a robust intellectual property portfolio, a firm market position, and plans for significant growth and expansion.

Business Highlights:

• Established Market Presence: The Company has established a reputable position in the fitness retail industry, maintaining high customer satisfaction and recognition for its curated selection of high-quality third-party and own-brand fitness gear.
• Industry Recognition and Strategic Collaborations: Acknowledged as one of Nike’s exclusive strategic partners in the UK and endorsed by a range of leading industry brands such as Adidas, Reebok, and other major players, the Company has solidified its status as a premier sportswear retailer within a highly competitive market segment.
• Impressive Growth Metrics: The Company has achieved financial milestones by processing a significant volume of transactions annually, both online and in-store. With last year’s annual revenue exceeding £7m and £5m this year, the Company is on a growth trajectory with great prospects.
• Global Footprint and Robust E-Commerce Capability: Operating across multiple continents, including the UK, US, and Europe, the Company has a robust global presence. Its strong emphasis and traction via its e-commerce platform and popular physical flagship store in London demonstrate its success as an omnichannel retailer.
• Community Engagement and Brand Building: The brand is deeply entrenched in the fitness community, cultivated through partnerships, sponsorships, and athlete collaborations, actively engaging with fitness enthusiasts to maintain its vibrant and loyal customer base and drive customer engagement.

Available Assets:

• Brand: The Company has built a strong reputation in the fitness industry, offering a comprehensive array of high-performance sportswear and equipment that has redefined fitness apparel. Despite its relative youth, the brand has swiftly ascended to become a prominent name in fitness, catering to a broad spectrum of athletic pursuits. The brand has been bolstered by its backing from/association with esteemed fitness brands like Nike, Reebok, Nobull and Puma, with these impressive partnerships underscoring the brand’s industry influence and reach. With an extensive social media following and a substantial database of over 367k customers, the brand’s appeal and market traction are undeniable.
• Robust Intellectual Property Portfolio: The Company has developed an extensive intellectual property portfolio to protect its market position. The Company’s intellectual property portfolio includes an international trade mark portfolio, branded domain names, popular social media accounts, sizeable customer and subscriber databases and the Company’s elegantly designed e-commerce website.
• Stock: Stock of clothes and accessories, located at the London store and third-party logistics warehouses, with a cost price of c. £170,000,
• Leasehold Property: A fully fitted leasehold retail store and gym in a prominent London location (fit-out cost c. £1.2m).
• Gym and Associated Equipment: The gym, retail and office equipment, including spin bikes, rowing machines and numerous free weights,
• Goodwill: Valuable goodwill attached to the business.