Struggling British fashion brand sold to Manchester sportswear group
- Ineos sells Belstaff to Castore after eight years of losses
Sir Jim Ratcliffe’s chemicals giant Ineos has sold struggling fashion brand Belstaff to Castore after enduring several years of losses.
The conglomerate, which has been reshaping its portfolio amid a downturn in its core chemicals business, announced on Friday Belstaff had been acquired on a debt-free and cash-free basis for an undisclosed fee.
Known for its heritage motorcycle gear, Belstaff has endured eight consecutive years of losses.
The brand, once promoted by Kate Moss and David Beckham, suffered a pre-tax loss of almost £18.3million in the year to 31 December 2023, its most recently published Companies House filings show.
It did, however, return an operating profit of around £2.3million, compared to a £14.3million operating loss the previous year.
Ineos bought the brand in 2017 from German investment firm JAB Holding, the owner of Pret a Manger.
The brand, once promoted by Kate Moss and David Beckham, suffered a pre-tax loss of almost £18.3million in the year to 31 December 2023
It did not reveal a fee for the sale of Belstaff, but Ineos said the deal will see the group make a ‘significant strategic investment’ in Manchester-based Castore.
Ineos, which owns a 29 per cent stake in Manchester Utd, is reshaping its heavily-indebted and loss-making business.
It sold its hygienics division to family office SKG Capital Partners in May, and the group has also cut back on several sports sponsorships.
Ineos said Castore and Belstaff ‘will join forces to drive future growth across premium categories, capitalising on Castore’s direct-to-consumer and online retail networks and expertise, supply chain, growing global retail footprint and Castore’s roster of professional sports team partnerships’.
Belstaff chair Ashley Reed Chairman of Belstaff, added: ‘This is a union of two British brands who have come together through shared qualities of purpose-led design and entrepreneurial spirit.
‘Castore is disrupting the sportswear market and has demonstrated phenomenal growth and resilience in recent years.’
Castore chief executive and co-founder Tom Beahon said: ‘Ineos and the management team at Belstaff have done a phenomenal job in steering the company back to profitability following a challenging period for the retail sector.
‘To have the opportunity to take Belstaff through the next stage of its growth journey is a dream come true and a huge privilege.
‘We are also delighted that Sir Jim Ratcliffe’s INEOS is investing in Castore which is a demonstration of commitment to our business and global growth ambitions and we look forward to working together to deliver on this vision.’
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