Scottish fund manager Circularity Capital has invested £10 mn ($12.1m) in circular fashion specialist Advanced Clothing Solutions (ACS) to develop its rental, subscription and resale operations. Established in 2015, Edinburgh-based Circularity specialised in investing in small and medium-sized businesses operating within Europe’s circular economy. The investment reportedly gives it a controlling stake in ACS. ACS works with brands and retailers, including Moss Bros, Slaters Menswear, Monsoon and LK Bennett, providing a complete rental, subscription and resale service with storage for more than three million items of clothing.
Andrew Rough, Chief Executive Officer of ACS, said: “I am delighted to partner with Circularity Capital, this strategic partnership recognises our objective of creating one of Europe’s largest circular fashion solutions providers specialising in clothing rental, subscription and resale.
“Circularity has a proven track record in playing a proactive role in supporting the growth of circular businesses. Offering so much more than just finance, the organisation will prove pivotal in delivering our goal of helping more fashion businesses to embrace rental, subscription and resale models.”
Set up in 1997, ACS originally operated in the formalwear hire sector but switched its focus to the emerging market for renting everyday clothing during COVID-19 lockdowns. Currently employing 200 people, the company aims to use the investment to further develop its UK operations while also exploring the opportunities for opening a second facility in Europe.
From environmentally-friendly cleaning to brand authentication, garment repair, photography, tailored branded packaging and delivery, ACS takes care of the whole process of returns and resale for fashion goods and accessories.
Andrew Shannon, Founding Partner at Circularity Capital, added: “The average European throws away 11kg of textiles every year, and around the world a truckload of textiles is landfilled or incinerated every second.
“ACS provides the capabilities and processes to enable retailers to scale their rental, subscription and resale ambitions with ease, transforming the industry from a traditional take-make-dispose model to one of reuse and resale.
“The investment from Circularity Capital will support the further expansion of ACS’ enabling solution to meet demand of a growing fashion rental industry.”
