Gymshark's Francis in talks to repurchase private equity stake
Gymshark founder Ben Francis is negotiating to buy back a portion of the stake he sold to General Atlantic, a move that signals shifting dynamics for the UK sportswear brand as it navigates a tougher consumer market.
Ben Francis is in talks with US private equity firm General Atlantic to buy back a portion of the 21% stake he sold in 2020. The Gymshark chief executive is not looking to acquire the entire holding, but is discussing the potential size and valuation of the repurchase. He is simultaneously discussing deal financing with several banks.
The 2020 transaction valued the exercise clothing brand at £1.25 billion, cementing its status as a unicorn and boosting Francis's estimated fortune to £726m. Francis retained a 70% stake in the business he originally built by sewing gym wear in his parents' garage in 2012.
The potential buyback comes as the company's rapid expansion cools amid intensifying competition and cautious consumer spending. In the year to July 2025, revenues grew 6.5% to £647m. However, pre-tax profits fell sharply from £11.8m to £6.9m, according to the most recent Companies House filing.
This margin pressure reflects the broader economic reality across Europe, where soaring household costs have forced shoppers to restrain discretionary purchases. Gymshark responded last year by cutting hundreds of roles. The company framed the restructuring as a necessary step to "weather near-term storms" and to better serve its customer base in continental Europe.
To combat the profitability squeeze, the brand has shifted its strategy by reducing discounting and increasing marketing spend to drive brand awareness. According to the annual results, this approach resulted in improved sales growth. Despite its direct-to-consumer heritage that historically bypassed retailers, Gymshark has also expanded onto the physical high street, opening outlets including a flagship store on Regent Street in central London.
The negotiations with General Atlantic, which maintains a representative on the company's board, highlight a shifting calculus for European founders. Francis attended a meeting with Chancellor Rachel Reeves last October as the government sought to encourage more companies to list in London. A private share buyback rather than an IPO suggests public market conditions remain challenging for European consumer brands.
