Jim Ratcliffe offloads Belstaff to Castore marking retreat from fashion empire

Billionaire Sir Jim Ratcliffe has sold his iconic British leather jacket brand Belstaff to sportswear manufacturer Castore, underscoring a decisive step back from the broader ambitions of his Ineos conglomerate. The deal, which completed on Thursday, sees Ineos parting with control of Belstaff after an eight-year stewardship, while taking a minority stake in Castore. Castore, already a prominent supplier to England’s cricket and rugby squads, will now add the historic jacket brand to its expanding portfolio.

Sir Jim acquired Belstaff amid pledges to revive and restore the label’s classic British automotive heritage. The company, founded in Stoke-on-Trent in 1924 and previously owned by Germany’s JAB, was seen as a jewel in the move towards diversifying Ineos’s interests. However, Belstaff has faced persistent financial challenges, culminating in an £18m loss in 2023 as sales slipped by four percent. To keep the brand afloat, Sir Jim has had to inject additional funds, with auditors signalling that ongoing support would remain essential for Belstaff’s survival.

This transaction signals a broader retrenchment for Ineos and Sir Jim, who in recent years spread his investments beyond chemicals, embracing ventures in sports, motoring and fashion. The offloading of Belstaff comes shortly after Ineos’s sale of a hand sanitiser brand born during the Covid pandemic, as well as the group’s withdrawal from rugby sponsorships, including its high-profile agreement with the All Blacks.

There is heightened scrutiny surrounding the future of Ineos Automotive and the Grenadier four-by-four line, whose development has cost over £1.4bn. The Grenadier division, with approximately 20,000 vehicles now on roads worldwide, has faced plenty of turbulence, including a recent recall of over 7,000 vehicles in the United States following customer complaints about faulty doors, and a temporary production halt after a supplier collapse last year. Despite these setbacks, production has resumed at the Hambach facility in France.

Sir Jim’s ongoing business adjustments extend into football, most notably at Manchester United, where he holds a 27.7 percent stake and has launched an extensive cost-cutting programme. He revealed publicly that by the end of 2025, the club would face a complete depletion of cash reserves. Despite these stark warnings, Manchester United is pressing ahead with ambitious plans to construct a new £2bn stadium that will have a capacity for up to 100,000 spectators.

The divestiture of Belstaff stands as a clear indicator that while Ineos’s forays beyond chemicals have made headlines, difficult market conditions and the challenges of brand turnaround have forced a sharp refocus on its core businesses. Whether this signals a lasting change in strategy or a temporary pause remains to be seen as Ratcliffe’s empire enters a new phase.