Advising Gymshark on all aspects of a minority investment by General Atlantic

Supporting Gymshark since 2014

Gateley first started working with Gymshark in 2014 when the shareholders were advised that they should put in place a formal shareholders’ agreement between them. This work was completed in spring 2015 and, as the business grew rapidly, the original shareholders’ agreement was varied and replaced in October 2015 when Steve Hewitt came on board as the new CEO.

Whilst we were carrying out our corporate work, the directors realised that they needed more help on general commercial matters and we were asked to advise on trade mark registrations. As a result, we advised on how to protect the Gymshark brand and to deal with international oppositions, infringements and occasional third-party counterfeiting.

As the business continued to thrive, our relationship was also growing. There were a number of additions to the office space in the UK and property partner, James White, advised on the entry into new premises in Redditch and surrender and termination of old premises. He also advised on the subsequent move to GSHQ, the development of GSLC and the satellite office in Soho.

Gymshark’s success meant that its staff numbers were rapidly increasing and we advised on a number of HR matters, relating to employment agreements and service contracts and compliance aspects, including the staff handbook. Employment partner, Merran Sewell, has been ever present on the Gateley’s Gymshark team, providing continuity of service to Steve Hewitt and Dave Parry, Chief People Officer.

There was a group reorganisation in 2016 when co-founder Lewis Morgan stepped away from day-to-day involvement and when executive chairman, Paul Richardson, came on board as a shareholder which Gateley’s corporate team handled.

Our range of services was extended in 2017 and 2018 when we were asked to put in place an enterprise management incentive arrangement. Gymshark met the criteria for a short while and seven options were put in place but the rapid growth meant that the company soon no longer fell within the qualifying criteria.

Any online business needs to have a secure and reliable logistics framework. When Gymshark identified Bleckmann as its preferred third-party logistics provider, Gateley’s Simon Pigden was able to act for the business in the detailed negotiations. That contract has stood the test of time and Gymshark’s relationship with Bleckmann has gone from strength-to-strength in Europe through two distribution centres in Belgium.

When Gymshark wanted to set up a sourcing office in Hong Kong, Gateley’s corporate team stepped in to help manage the process, engaging and instructing overseas counsel in the incorporation process and in negotiating the office premises in Kowloon.

Gymshark wanted to reconstitute its in-house legal team in 2018 and Gateley helped to cover the gap before the appointment of Liz Thompson, providing a range of overspill work in a broad range of areas from general terms of business, advice on the influencer agreements and reviews of the app contracts. 

Gateley’s banking team, led by partner, Andrew Madden, advised the group on a new facility with HSBC in 2019/20, working closely with CFO, Philip Daw.

Gateley was involved throughout the investment process, designing the selection programme for appointing a corporate finance adviser as a result of which PwC was the successful party. After this process, Gateley then worked closely with PwC and the Gymshark shareholders to deliver a global deal in the face of a COVID-19 environment. The full Gateley team was needed on this project, with the full range of specialists from corporate to data protection, from IPR to employment, from pensions to real estate, not forgetting tax, insurance, banking and pensions experts.