German sportswear giant adidas is exploring the sale of US brand Reebok as early as March 2021, according to a report by Bloomberg.
adidas has assigned an internal team to draw up a deal as Chief Executive Kasper Rorsted seeks to put an end to the ill-fated investment.
adidas bought Reebok in 2006 for around US $ 3.8 billion or €3.1 billion in a bid to stay competitive. Since then, the proportion of revenue that comes from Reebok has fallen for adidas.
After taking over as CEO, Rorsted has parried rumours that he was looking to sell the brand and has shut under-performing Reebok stores or allowed some licensing deals to expire to cut expenses.
While adidas’ sales fell by a third in the quarter to June compared to last year, Reebok’s dropped by 42 per cent to just US $ 270 million.
Another source, Manager Magazin, claims that parties interested in the sale include VF Corp, which owns Vans, Timberland and North Face, and FILA owner Anta International Group Holdings.
Also, Rorsted is expecting for Reebok to go for around US $ 2.4 billion.
Reebok’s shares surged 3.4 per cent in Frankfurt trading after the news of a potential sale of Reebok got leaked.