Textile Recycling Company, 61% Annual Growth Rate
Annual Revenue: $19,346,785
Net Cash Flow: $6,415,004
Location: North Carolina
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This fast-growing wholesale B2B textile distributor collects used apparel at over 3,000 clothing and shoe drop locations throughout the US. It recycles and redirects collections to secondhand markets on 4 continents.
In 2022, the company generated $19.3M in revenue with an EBITDA margin of 33%. Its well-developed systems, processes, and people framework have realized EBITDA margin growth from 5% to 33% between 2019 and 2022. The firm foresees an estimated revenue increase to $26.6M in 2024.
Team: The company is led by the CEO and the CFO, the co-founders. Their operations are supported by a team of more than 80 full-time employees.
Product Offerings: The company has a proven track record in collecting, packaging, and distributing clothes, shoes, toys, books, home goods, and bedding. It has more than 1,200 executed commercial leases, over 3,000 domestic collection points, and 13 distribution points worldwide.
The company sells B2B to direct-to-consumer retailers.
Transition Support: The current leadership, is fully committed to being a part of the next generation of the company to ensure stability, recruit and train the new management team, or support the placement of an already established team transitioning into the business.
The company is the largest textile recycler and wholesale distributor of second-hand apparel and footwear in the Southeast US market. Competitors in some states make up less than 15% of the market. In other states, 80% of the market share is available as a result of these markets’ maturation being at an infancy stage and/or industry fragmentation.
The company is one of the pioneers in the textile recycling market. Its growth strategy includes the following:
- Launch a national second-hand brand
- Bolt-on acquisitions to enhance the business
- Add-on capabilities in terms of sales talent and real estate management for leases