Hype acquired by Apparel Brands

Manchester-based Apparel Brands, which was established in 2017 and backed by True Capital since 2023, owns streetwear labels Bench and Nicce, and has the license to sell Farah, Ed Hardy, Smith & Jones and Seafolly.

The company has acquired a 60% stake in Hype, with an option to purchase the remaining 40% from current owner Sarjan Dulai. The deal comes 18 months after Dulai bought the brand in a pre-pack administration last year. In March, co-founders Liam Green and Bav Samani exited the business.

Hype CEO Mike Thompson said the business has gone through a "reset" process during the past year improving efficiency and working towards a linear stock model. The business has reduced its inventory from over 1,500 SKUs (stock keeping unit) in April 2023 to around 500 SKUs and is "performing better".

According to Thompson, the business is now in a position to expand under the new ownership: "We now have a gateway to new B2B opportunities through [Apparel Brands'] portfolio of brands.

"[We will also benefit from] supply chain optimisation through economies of scale. It is now a conversation of potentially six or seven brands so it will give us greater leverage. And there is brand-building capability that we can harness."

The business plans to expand its physical presence with key wholesale accounts, which currently include 60 M&S stores, 100 WHSmith locations and 120 Deichmann stores. It also has third-party partnerships with Next, John Lewis and Zalando.

Thompson continued: "Our aspirations moving forward is to be two thirds pre-book and one third variable order book. So we would like to really drive our international B2B portfolio over the next two to three years. [Internationally], there is definite brand appetite within the GCC [Gulf Cooperation Council] and within India."

Peter Wood, founder and CEO of Apparel Brands, said: "Hype has long been a powerhouse in youth fashion and accessories and we see an incredible opportunity to build on the brand’s legacy.

"We have a clear focus on becoming the leading brand for kids and families. Hype will be at the forefront of fashion that parents and children can rely on—whether it's for everyday wear, back-to-school essentials, or any other occasion."