Left Menu
Development News Edition

Adidas plans to sell ailing Reebok business within months - manager magazin

German sportswear company Adidas is planning to sell its Reebok division, Germany's manager magazin reported on Thursday, as the group seeks to put an end to its ill-fated investment in the U.S.-focused brand. Adidas Chief Executive Kasper Rorsted plans to complete the sale by March 2021, the magazine said, without citing where it obtained the information.

Reuters | Updated: 23-10-2020 10:50 IST | Created: 22-10-2020 19:06 IST
Adidas plans to sell ailing Reebok business within months - manager magazin

German sportswear company Adidas is planning to sell its Reebok division, Germany's manager magazin reported on Thursday, as the group seeks to put an end to its ill-fated investment in the U.S.-focused brand.

Adidas Chief Executive Kasper Rorsted plans to complete the sale by March 2021, the magazine said, without citing where it obtained the information. Manager magazin said U.S. apparel maker VF Corp and China's Anta Sports were among the interested parties, without citing sources.

Adidas declined to comment. VF Corp did not immediately respond to a request for comment, while Anta Sports could not be immediately reached for comment outside office hours in China.

Shares in Adidas jumped as much as 3.5% on the report, reflecting hopes for a sale following repeated calls to dispose of Reebok from investors who criticised a lack of progress in turning around the business. The German company bought Boston-based Reebok for $3.8 billion in 2005 under Rorsted's predecessor Herbert Hainer, aiming to take on U.S. arch rival Nike on its home turf.

Last year, however, Adidas wrote down Reebok's book value by nearly half compared with 2018, to 842 million euros ($995 million). The unit's sales fell 44% in the second quarter of 2020 to 228 million euros, leading to its parent taking impairment charges in the period. Rorsted had flagged in March that Reebok's role within the group would be decided as part of Adidas' new strategy, to be unveiled next year.

($1 = 0.8452 euros)


TRENDING

OPINION / BLOG / INTERVIEW

Turbulence surrounding tobacco control in Ghana

... ...

Smart healthcare: IoT redefining the way healthcare is delivered

As the world is embracing the new wave of digitalization triggered by the pandemic and the arrival of 5G, the adoption of IoT devices will further boom. With adoption set to soar, IoT security issues and other challenges cant be ignored any...

Refugee compassion and response: Ideas to mitigate disasters now and in their future

Their homeland becomes a forbidden territory for them and more likely than not, their journey to foreign soil is no less traumatizing, not to say deadly. It is crucial to help refugees live a life of dignity and purpose....

Inadequate water infrastructure causes a tidal wave of coronavirus in rural Alaska

... ...

Videos

Latest News

Elephant rides resume at Amber

Elephant rides at the famous Amber Fort here has resumed after remaining closed for months due to the coronavirus-triggered lockdown. The Superintendent of Amber Fort, Pankaj Dharendra, said as per the order issued by the Department of Arch...

EXCLUSIVE-S.Africa confirms going for COVAX vaccine scheme for 10% of population

South Africa is going with the COVAX global COVID-19 vaccine distribution scheme, with a committed purchase for 10 of its population of 58 million, a senior health official said on Tuesday.Khadija Jamaloodien, director of affordable medicin...

U.S. senators urge Facebook, Twitter for tighter checks before Georgia runoff election

U.S. Senator Richard Blumenthal on Tuesday called on the heads of Facebook and Twitter for information on steps the social media firms are taking to prevent the spread of misinformation ahead of the runoff U.S. Senate elections in Georgia. ...

Shia cleric Maulana Kalbe Sadiq dies in Lucknow hospital

Prominent Shia cleric and All India Muslim Personal Law Board vice president Maulana Kalbe Sadiq died in Lucknow on Monday. He was 83. Maulana Sadiq breathed his last at around 10.00 pm at a private hospital here, his son Kalbe Sibtain said...

Give Feedback