Castore courts Chinese buyers as sportswear brand’s backers seek exit

{"text":[[{"start":8.64,"text":"The brothers behind Castore are in talks to sell the upstart UK sportswear brand to US or Chinese buyers, as they seek an investor who can accelerate growth and provide an exit for its high-profile backers."}],[{"start":20.76,"text":"Tom Beahon, who co-founded Castore a decade ago with his brother Phil Beahon, said in an interview that the company had received inbound interest from Chinese sportswear groups Anta and Li-Ning — which he said were “the Nike and Adidas” of China."}],[{"start":35,"text":"Castore was now in talks over a potential sale with those companies, as well as with some large US footwear brands, Beahon said."}],[{"start":42.64,"text":"Anta declined to comment and Li-Ning did not immediately respond to a request for comment."}],[{"start":47.88,"text":"The brothers, whose parents remortgaged their house to provide them with start-up funding, own a majority stake in Manchester-based Castore. It has struck sponsorship deals with a string of major sports teams and was valued at £950mn in a funding round three years ago."}],[{"start":63.64,"text":"Beahon said he told his advisers at JPMorgan that he didn’t “want to be speaking to 100 people, I want to speak to the handful that could be genuinely valuable to how we build a business, or can unlock a market”."}],[{"start":null,"text":"

"}],[{"start":75.32,"text":"A sale would present an opportunity for Castore’s eclectic backers to cash out. They include Ineos founder and Manchester United co-owner Sir Jim Ratcliffe, former tennis player Sir Andy Murray, who invested in 2019 as part of a sponsorship deal, and Mohsin and Zuber Issa, the tycoons behind forecourt empire EG Group."}],[{"start":95.24,"text":"Ratcliffe took a roughly 11 per cent stake last year as part of a deal in which Castore acquired Belstaff, a heritage clothing brand best known for its motorcycle jackets, from Ineos. Despite their joint business interests, Beahon said that at his quarterly meetings with Ratcliffe in Monaco the conversation typically revolved around football."}],[{"start":115.04,"text":"The launch of a formal process to find a new investor was largely driven by Castore’s financial investors, Beahon said. These include Hanaco Ventures, venture capital firm Felix Capital and US bank Raine Group, which owns around 11 per cent."}],[{"start":129.12,"text":"The brothers, however, plan on staying in. “Me and Phil are not interested in exiting,” Beahon said. “We don’t want to go and sit on a beach or play golf for the rest of our lives. I’m 36, he’s 33, what are we going to do with ourselves?”"}],[{"start":null,"text":""}],[{"start":143.56,"text":"Talks with Anta and Li-Ning reflect the global ambitions of China’s homegrown sports brands, which have grown into formidable competitors to Nike in their home market. Anta this year acquired a €1.5bn stake in Puma, while Li-Ning unveiled a sponsorship deal with basketball superstar Steph Curry in June."}],[{"start":162.44,"text":"A London listing for Castore, which Beahon had once talked up, is now off the table. Castore’s co-founder pointed to the rocky time other founders have had on London markets, including Matt Moulding of THG and Deliveroo’s Will Shu."}],[{"start":176.64,"text":"Castore’s recent diversification efforts — such as its acquisitions of Belstaff and boot brand Grenson — have been perceived by some industry figures as a reflection of troubles in its core sportswear business."}],[{"start":188.16,"text":"The company has been criticised for the quality of its football kits, such as Aston Villa’s “wet look” shirts which appeared to retain sweat. Castore subsequently lost its contract with Villa and with Newcastle United."}],[{"start":200.32,"text":"Beahon said quality problems “happen to everyone”, adding that the loss of some kit deals to Nike and Adidas was because the “big guys noticed” an upstart was on their patch. “Building a business in the sportswear market is the school of hard knocks,” said Beahon."}],[{"start":214.52,"text":"Castore has won major sponsorship deals — such as England’s cricket and rugby teams and the McLaren F1 team — but has consistently struggled to generate positive cash flow. Its most recent accounts show Castore made a pre-tax loss of £40.8mn on £334.6mn of revenue in the 18 months to August 2025."}],[{"start":null,"text":""}],[{"start":236.04,"text":"Beahon said Castore would increase revenues by a double-digit percentage this year and that he was on the hunt for more acquisitions to help it be less “beholden to what happens on the pitch”."}],[{"start":246.6,"text":"Owning Belstaff, Beahon said, provided new ways of developing partnerships with sports teams. Everton manager David Moyes now wears a Belstaff jacket on the sidelines while the England rugby team will be dressed in the brand’s down-filled jackets while travelling to next month’s Autumn Internationals."}],[{"start":265.28,"text":"Despite UK Prime Minister Andy Burnham’s northern roots and commitment to devolution, Beahon is scathing about Labour’s business policies to date."}],[{"start":274.84,"text":"“National insurance is literally a tax on jobs. If you want people to smoke less, you tax nicotine. If you want people to speed less, you put speed cameras on the roads and if you want to create less jobs, you tax jobs.”"}],[{"start":288.78,"text":"He said that while much of the focus on the consequences of higher taxes for the UK’s wealthiest citizens was on the exodus of billionaires, he was more concerned about the number of young entrepreneurs choosing to start their businesses abroad."}],[{"start":301.08,"text":"“I used to be able to tell young founders this was the best place in the world to start a business,” Beahon said. “I can’t say the same today.”"}],[{"start":313.96,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1792574989_1709.mp3"}