Kick Game trainer reseller accelerates to £150m sale as demand explodes | Business newsletter
A footwear retailer that has grown to be a fan of Gen-Z consumers has drafted advisories to explore options including a £150 million discount.
Sky News has learned that Kick Game, founded in 2013, is working with accounting firm PricewaterhouseCoopers (PwC) to attract the interest of several suitors.
The process, which is expected to take several months to complete, shows a growing interest in sneakers and streetwear as an emerging asset class for collectors and traders.
Kick Game has stores in London, Birmingham, Leeds, Liverpool and Manchester, and has seen explosive sales volumes since the outbreak of the pandemic.
It claims to be the UK’s largest reseller, with sales reaching £40m this year.
Kick Game employs about 150 people.
Demand for limited-edition footwear in particular has spurred new revenue streams for multinational brands like Nike and Dior.
Cowen & Co, the investment bank, estimates that the athletic shoe resale market could be worth $30 billion by 2030.
‘Buy and sell works of modern art’
“I told my team they were buying and selling modern art,” says Rob Franks, co-founder of Kick Game.
“There aren’t many things you can think of where you can buy something at face value one day and when it all sells out, it goes up in price. [tenfold] the very next day – certainly not at that volume,” he added.
He points out that prices could fall just as sharply.
“One day, a pair of shoes is worth £1,500. Then the next day Nike has a surprise drop in price and it’s down to £150,” said Mr. Franks.
The booming market for resale shoes has prompted leading auction houses such as Sotheby’s to form groups specializing in luxury footwear products.
Mr Franks added that Kick Game is “on track” to generate a monthly revenue of £5m.
Benefit from the supply chain crisis
Kick Game is backed by VGC Partners, a growth investment firm focused on consumer industries founded by Parminder Basran, a serial entrepreneur and investor.
VGC, which has invested in businesses including SuperAwesome and Iconic Images, is now said to be preparing to complete a £150m fundraising round for its latest fund.
Dealers like Kick Game are among the relatively scarce companies that have benefited from the supply chain crisis that has engulfed the global economy.
The prices it charged for train and streetwear increased as their scarce value increased, stoking hopes of a bumper sale price.
Insiders say Kick Game may choose to raise further funds instead of selling it all out.
The company declined to comment on the appointment of PwC.
