Castore in $200m fundraising talks in bid to rival Nike and Adidas
Some bankers believe Castore could be up for a medium-term stock market flotation as it expands
Sportswear brand Castore is reportedly in talks with investors about a $200m (£166m) fundraising deal as it aims to compete with sportswear giants Nike and Adidas.
According to Sky News, Castore has appointed Rothschild to advise the process and secure a significant capital injection.
Initial talks with prospective investors have already begun ahead of a formal process later this year.
Castore mainly trades online and sells itself as a high-quality alternative to the traditional sportswear brands.
The company has a number of high profile deals with sports teams including Newcastle United and Wolverhampton Wanderers in the Premier League and McLaren and Red Bull in Formula One.
Sir Andy Murray has also been a shareholder in the company since 2019 alongside other high profile business owners such as the Issa brothers of the EG Group.
Castore was reported to have been valued at £750m after its most recent debt financing last autumn.
That deal saw it extend its borrowing facilities to include lenders such as HSBC and Silicon Valley Bank.
One Sky source speculated the company was likely to seek a valuation of more than £1bn if it sold shares as part of the new capital raise.
Some bankers believe Castore could be up for a medium-term stock market flotation as it expands.
Retail Sector has contacted Castore for comment.