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Friday, April 23, 2021

Adidas Will Sell Reebok Business

German sportswear giant Adidas is planning to sell its Reebok division, as the group is currently seeking to put an end to the ill-fated investment in the United States-focused brand.

German sportswear giant Adidas is planning to sell its Reebok division, as the group is currently seeking to put an end to the ill-fated investment in the United States-focused brand.

Addidas is planning to complete the sale by March 2021, pointing out that the company had written down the book value of Reebok by almost half to $995 million since the year 2018, but didn’t specify a possible sale price. The media outlet also pointed out that VF Corp and Chinese giant Anta Sports are considered to be among the interested parties.

Shares in the German company jumped on the news and traded 3.3 percent higher on Thursday morning, reflecting repeated calls by investors to dispose of Reebok, impatient with the lack of progress to turn around the business.

Bought by Adidas in in the year 2005 for $3.8 billion, Reebok’s sales fell 44 percent in the second quarter of this year to $270 million, mainly because of the company’s large exposure to the American market, causing its parent to take impairment charges in the period.

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