Member Article

Leading retailer backs Newcastle sportswear startup with £1.2m investment

Newcastle premium sportswear business Castore has landed a £1.2m investment from a group led by the founder of New Look.

Headed up by Newcastle University graduate Phil Beahon and his brother Tom, the duo launched the enterprise with support from Newcastle University’s START UP Founderships.

Part of the 2016-2017 cohort, Phil and Tom were two of ten founders and co-founders selected by a special panel of University alumni and friends to receive a START UP Foundership and the associated support and funding as a fledgling business.

Phil, who was awarded a law degree from Newcastle in 2014, and Tom are both in their 20s and used their experience as semi-professional athletes as inspiration to set up their sportswear brand.

Tom said: “Phil and I are both former athletes; he was a cricketer and I was a footballer. Pursuing our passion for sport meant intensive training, and living in sports clothes, day-in and day-out.

“When you put clothing through its paces, you start to notice its quality. We found that mass-market sportswear brands were of average quality. This was our gap in the market.”

Castore already sells to 18 countries from its website, but plans to open three shops in London. With the help of this most recent tranche of investment from a group led by Tom Singh, of New Look, Castore hopes to invest further in its online platform and also open stores in Hong Kong, Shanghai and New York.

Castore’s turnover is set to be £650k this year, rising to £2.1m next, with overseas sales accounting for 45% of the total.

The business employs 12 people and works with a Portuguese textile factory to create its products. Worldwide distribution is handled from its Merseyside headquarters.

Reflecting on the journey so far, Phil added: “The START UP Foundership from Newcastle University was integral in helping Castore secure our first round of fundraising.

“As a small, fast-growth business, the first six months are usually the hardest and the University provided all the necessary support to help us navigate the inevitable challenges you face and I will be forever grateful.”