WWD points out that adidas may choose to keep Reebok, a brand it acquired for $3.8 billion in 2006. After a significant down period, adidas implemented a plan to get the brand back on track in 2016, leading Reebok to profitability in 2018, two years earlier than expected.
Reebok then experienced a two percent sales growth in 2019, before being hit hard by the pandemic in 2020. The brand's revenues were down seven percent in the third quarter of this year and 20 percent total in the first nine months of 2020.
Manager Magazin points out that adidas' Kasper Rørsted had hoped to revitalize Reebok upon being appointed CEO in 2016. In the years since, he has stated on numerous occasions that he has no intention of selling the brand, even amid urges to do so from investors.
Adidas is said to have an internal team currently working on the sale of Reebok. Possible suitors are VF Corporation, which owns Vans, Timberland, and The North Face, among others, and China's ANTA Sports.
Adidas purchased Reebok back in 2006 for $3.8 billion, as it hoped to have the brand compete with rival Nike in the United States. Recent struggles, including a 42 percent decrease in revenue in Q2 2020, have spawned Rørsted to offload Reebok for a desired sum of $2.4 billion, Manager Magazin reports, although this was the target amount given before the pandemic hit.
Since news of adidas' reported sale of Reebok, the company's shares have risen 3.2 percent.
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