Gymshark Founder Ben Francis is poised to reassert control over a significant portion of his eponymous sportswear business after reportedly entering advanced discussions with US private equity giant General Atlantic to reacquire part of their 21% stake. The entrepreneur, who built the brand from humble beginnings in his parents' garage in 2012 and retains a 70% shareholding, is seeking to regain control over the £1.25 billion-valued business.
The original deal with General Atlantic, brokered in 2020, catapulted Gymshark into the exclusive 'unicorn' club of companies valued at over £1 billion, catapulting Francis's personal wealth to an estimated £726 million according to the latest Sunday Times Rich List. With General Atlantic holding a representative seat on Gymshark's board, Francis is said to be engaging with banks to secure financing for this potential buy-back, although not aiming to acquire the entire 21% stake.
This development coincides with Gymshark, like many consumer-facing businesses, experiencing a moderation in its growth trajectory due to intensified market competition and a more cautious consumer landscape. The economic backdrop has led to households making more considered spending decisions, impacting discretionary purchases such as sportswear, amidst soaring living costs.
Gymshark responded to these challenges by undertaking a significant restructuring last year, including job cuts aimed at 'weathering near-term storms', and investing in its direct-to-consumer sales model. Despite experiencing a notable decline in pre-tax profits from £11.8 million to £6.9 million over the past 12 months, the company's revenues rose by 6.5% to £647 million (year ending July 2025), with profit margins maintained through strategic moves.
The company's annual results filing highlighted measures to reduce discounting and enhance marketing and brand awareness, contributing to improved sales growth. Francis, who received an MBE in 2022 for his services to business, has been involved in broader economic discussions, including meeting with Chancellor Rachel Reeves last October as part of her efforts to encourage more companies to list on the London stock exchange.