Castro Takes 90% Stake in ANTA Venture After Renuar Exits Partnership
Castro has dropped Renuar from its joint venture to distribute Chinese sportswear brand ANTA in Israel, raising its stake to 90%. Israel Chen will hold the remaining 10% and serve as CEO as Castro prepares for a 2027 market launch.
Fashion group Castro has abruptly altered its strategy regarding the distribution of Chinese sportswear brand ANTA in Israel, dropping its competitor Renuar from the partnership just three months after the initial announcement. According to a disclosure submitted by Castro to the Tel Aviv Stock Exchange, the fashion group will now hold approximately 90% of the new subsidiary, up from the previously planned 51%. Meanwhile, Israel Chen will retain a 10% stake and continue to serve as the venture's chief executive officer.
The revised ownership structure completely undoes the arrangement announced last August, which would have seen Renuar acquire a 39% stake in the joint venture. Despite Renuar's exit, the underlying agreement to acquire retail space rights, absorb employees, and transfer infrastructure from ING—an import and distribution firm specializing in sportswear—remains unchanged. Chen, who previously managed ING's operations, will lead the rollout of the ANTA brand in Israel, though his equity share remains subject to a prearranged buyback agreement.
Strategic Expansion and Market Challenges
For Castro, which is primarily known for its core apparel brands as well as Hoodies and Urbanica, the venture represents a major push into the lucrative sportswear market. The company plans to establish a dedicated retail chain for ANTA, launch a dedicated e-commerce website, and develop wholesale operations, with commercial activities slated to begin in 2027.
However, breaking into the local athletic apparel market will present significant hurdles. Castro will go head-to-head with established giants such as Retailors, a subsidiary of Fox Group that operates Nike and Foot Locker stores in Israel, alongside other prominent international brands.
Global Scale and Financial Outlook
ANTA is a dominant force in the global sportswear industry, traded on the Hong Kong Stock Exchange and operating a vast retail network across China. Nevertheless, industry analysts note that domestic success in Asia does not guarantee immediate traction in the Israeli market.
The pivotal question is how Renuar's departure will impact Castro's financial roadmap. On one hand, Castro gains near-total operational control over the new enterprise. On the other hand, the company must now shoulder the entire financial burden of store construction and brand building without a secondary capital partner.
As of now, Castro has not reported any changes to the initially estimated 30 million shekels investment required for the five-year rollout. The company emphasized that the final completion of the agreements remains conditional upon customary closing conditions, including third-party approvals and clearance from the Israel Competition Authority.
