Gymshark Founder Francis Eyes Stake Buyback to Bolster Company Control

Ben Francis, founder and CEO of sportswear brand Gymshark, is reportedly in discussions to reacquire a portion of the stake he sold to private equity firm General Atlantic, aiming to strengthen his control over the company. This potential transaction follows the significant investment deal in 2020 that valued Gymshark at over £1 billion.

In 2020, the US private equity firm General Atlantic invested £200 million in Gymshark, acquiring a 21% stake in the business. This deal propelled Gymshark to 'unicorn' status, valuing the company at more than £1 billion and solidifying its position as one of the UK's most recognized consumer brands. Despite the investment, Francis maintained a majority holding of approximately 70% in the company. Francis founded Gymshark in 2012 by sewing his own gym clothes in his parents' garage, rapidly growing the brand through strategic collaborations with social media influencers.

However, Gymshark has recently navigated a more challenging trading environment, marked by slower growth, intensified competition, and weaker consumer spending. For the financial year ending July 2025, the company reported a 6.5% increase in revenues to £647 million, but pre-tax profit declined from £11.8 million to £6.9 million. These figures highlight the pressure on the company's profit margins.

This strategic move coincides with Gymshark's recent operational and financial adjustments. The company underwent a restructuring last year, impacting hundreds of roles, in an effort to manage near-term pressures and enhance its operations in continental Europe. Additionally, while maintaining its direct-to-consumer model, Gymshark has opened a limited number of physical stores, including its flagship outlet on London's Regent Street, as part of efforts to build brand awareness and establish an omnichannel business model.

The discussions for a stake buyback emerge at a time when a potential initial public offering (IPO) for Gymshark had been previously considered. Francis's endeavor to increase his control underscores his commitment to fostering a profitable future for the company, moving beyond its direct-to-consumer origins. For General Atlantic, a partial reacquisition by the founder would represent an unusual unwinding of a growth-equity position. The ongoing talks reportedly cover the valuation and the size of the stake Francis intends to repurchase, with Francis also engaging with banks to secure financing for the transaction.

Market analysts suggest that such a founder-led buyback could provide tighter control over the company's long-term strategies, enhancing agility in the current challenging market conditions. While a partial exit for General Atlantic could significantly alter the company's financial structure, Gymshark's efforts to strengthen its position in the global sportswear market and regain growth momentum will be closely watched. Francis's decision to increase his ownership is seen as a pivotal moment for the brand's future direction.