Castore have announced a huge £28.8million loss for the year up till February 2024.
The Manchester-based manufacturer have made Rangers' kits and training wear since 2020. They also oversee all the Gers' retail operations.
The brand, which has Andy Murray among its investors, has already lost the likes of Newcastle United and Aston Villa from their portfolio this season.
And their current contract with Rangers is set to expire at the end of the 2024/25 campaign.
Castore's financial statements - filed to Companies House - reveal that the company faced extraordinary expenses exceeding £24.4million over the past year, resulting in a net loss.
Prior to factoring in these exceptional costs, the company's operating profit plummeted from £16.5m to just £399,148. The extraordinary expenses encompassed £2.1m for warehouse consolidation, £9m allocated for stock provisions, £6.3m in fundraising expenditures, and £3.8m related to onerous contracts.
Read more:
A Castore statement on Thursday read: “The company implemented a strategy to improve the efficiency of its supply chain during the period, which included the consolidation of some of its UK warehouses.
“This presented challenges to the business, which adverse effects on both our operations and our customers’ ordering experience.
“Management mitigated these impacts by increasing staffing levels temporarily and reducing promotional activities during the period, however, trading was adversely affected over the second half of the period.
“The company also incurred additional costs to ensure customers’ orders were fulfilled and the company took a significant write off of stock as a result of stock missing the optimum clearance window.”
