Castro Takes Full Control of ANTA Brand Distribution in Israel
Translated & summarized from Ice by baba
Castro is taking over the sole distribution of the Chinese sportswear brand ANTA in Israel, increasing its ownership in the venture to 90% after competitor Renoir withdrew. The initial NIS 30 million investment deal, planned as a partnership, will now be managed entirely by Castro, with operations expected to launch in 2027. This strategic move aims to expand Castro's market presence into sports retail, though it faces significant competition.
The story in 5 lines · by baba
- Castro will now hold 90% of the ANTA brand distribution venture in Israel after Renoir's withdrawal.
- The initial investment for ANTA distribution in Israel was estimated at NIS 30 million.
- Castro plans to launch a dedicated store network, online sales, and wholesale operations for ANTA.
- Operations for the ANTA brand in Israel are scheduled to commence in 2027.
- Israel Chen will continue to serve as CEO of the ANTA operation in Israel.
Castro, an Israeli fashion group, has announced a significant shift in its strategy for distributing the Chinese sportswear brand ANTA in Israel. Initially planned as a partnership with competitor Renoir, Castro will now proceed with establishing the ANTA operation independently. This change means Castro's stake in the joint venture will increase from 51% to approximately 90%, with Israel Chen retaining about 10% and continuing as CEO of the operation.
The initial agreement, announced in August, involved Castro holding 51%, Renoir 39%, and Chen 10%. However, Castro's stock exchange filing on Wednesday confirmed that Renoir will not participate in the new partnership, effectively nullifying the previously announced ownership structure. The deal to acquire assets, hire staff, and transfer infrastructure from ING, a company specializing in sports brand import and distribution, remains unchanged.
This move is a key part of Castro's expansion strategy to enter the sports market, complementing its existing fashion brands like Hoodies and Urbanica. The company plans to launch a dedicated store network, an online sales platform, and wholesale operations for ANTA, with activities slated to begin in 2027. The initial investment for distributing ANTA in Israel was estimated at NIS 30 million over five years.
Castro will face competition from established players like Retailors, part of the Fox Group, which operates Nike and Foot Locker in Israel, as well as other major international brands. ANTA itself is a significant global sportswear player, listed on the Hong Kong Stock Exchange with extensive retail operations in China.
While Castro will now have almost complete control over the new venture, it will also bear the full responsibility for its establishment and growth, including the necessary investments in stores and brand building, without a financial partner. Castro has not yet reported any changes to the planned investment volume, but the finalization of agreements is subject to conditions, including approvals from third parties and the Competition Authority.