Companies

Sportswear brand Castore plans to secure capital injection

Feb 24, 2023 United Kingdom

The Manchester-based sportwear brand is working with the multinational investment bank Rothschild to raise around 200 million US dollars to fund its expansion

The news was advanced by Sky News. The company, founded by the Liverpudlian brothers Phil and Tom Beahon and supported by the three-times Grand Slam winner Andy Murray, is planning to secure a “significant capital injection”. According to the newspaper sources, initial talks with prospective investors have already begun ahead of a formal process.

Castore, which mainly sells its products online, has been positioning itself as a high-quality alternative to established companies such as Adidas and Puma. It has even signed supply deals with Premier League teams, including the Newcastle United and the Wolverhampton Wanderers. The company was reportedly valued at 750 million British pounds after its most recent debt financing, and saw it extend its borrowing facilities to encompass lenders including HSBC and Silicon Valley Bank.

The British brand will most likely report 2022 profits of about 30 million British pounds. “As the economy has worsened, people have focused their budgets. They're still spending but only on things they're passionate about. We're selling products for sports teams whose fans are incredibly passionate. For team sports fans, buying their child the team's shirt or jacket is not a discretionary purchase”, explained Tom Beahonold to The Sunday Times last year.

Image Credits: timeloucura.com.br

United Kingdom Companies Investment Sportswear