Gymshark founder and chief executive Ben Francis is in talks to buy back part of the stake he sold to General Atlantic, as he looks to increase his control of the UK fitness apparel business, according to a report by the Financial Times.
Francis is reportedly discussing the potential valuation and size of a transaction with the US private equity firm, while also holding talks with banks over financing.
General Atlantic invested £200m in Gymshark in 2020 in exchange for a 21% stake, valuing the company at £1bn. The deal made it one of the UK’s best-known consumer unicorns and left Francis, who founded the business in his parents’ garage aged 19, with a majority holding.
Francis currently owns about 70 per cent of Gymshark and is reportedly more likely to buy back part of General Atlantic’s stake than the full holding. General Atlantic has a representative on the company’s board.
The talks follow a more challenging period for Gymshark, which has seen growth slow amid tougher competition and weaker consumer spending. The company restructured last year, cutting hundreds of roles as it sought to manage near-term pressures and improve its operations in continental Europe.
The company has also opened a small number of physical stores, including its flagship outlet on London’s Regent Street, as it seeks to build brand awareness. It has also previously considered an IPO.
