Authentic Brands Group (ABG) has reportedly ended its licensing agreement with Farfetch-owned New Guards Group (NGG), which managed Reebok’s distribution across Europe.
A memo from NGG’s management to employees revealed that ABG issued a termination notice due to unresolved economic issues between the two companies. The disagreement stems from royalty payments, with NGG allegedly owing ABG around US $ 300 million. As a result, NGG has been instructed to halt operations of Reebok’s European website and discontinue sales of its products.
NGG’s position has been uncertain following the 2023 sale of its parent company, Farfetch, to South Korean retail giant Coupang. Coupang has shifted its focus toward luxury platforms, deprioritizing other ventures.
Earlier this year, NGG faced speculation of a potential takeover, with Italian private equity firm Style Capital reportedly considering an acquisition. However, no concrete deal has emerged, and no other buyers have come forward.
NGG acquired the Reebok licensing rights in 2021 after ABG purchased the brand from Adidas. This agreement allowed NGG to oversee Reebok’s European retail stores, e-commerce, and wholesale operations.
