Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  News  >  Companies

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors

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

10/22/2020 | 10:17am EST
Boards with Reebok store logo are seen on a shopping center at the outlet village Belaya Dacha outside Moscow

FRANKFURT/MUNICH (Reuters) - 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.

(Reporting by Christoph Steitz and Alexander Huebner; Editing by Thomas Seythal, Keith Weir and Pravin Char)

© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
ADIDAS AG -0.36% 273.7 Delayed Quote.-5.21%
ANTA SPORTS PRODUCTS LIMITED 3.29% 106.6 End-of-day quote.52.83%
NIKE, INC. 0.62% 135.54 Delayed Quote.33.79%
VF CORPORATION -1.33% 87.57 Delayed Quote.-12.13%
Latest news "Companies"
04:56aDIAGEO : Upgraded to Buy by Morgan Stanley
04:56aBALMER LAWRIE : signs MoU 2020-21 with Ministry of Petroleum & Natural Gas
04:56aAB INBEV : Morgan Stanley gives a Neutral rating
04:56aBlack Friday & Cyber Monday NordVPN Deals Tracked by Spending Lab
04:56aDYSON ANIMAL BLACK FRIDAY & CYBER MONDAY DEALS 2020 : Best Dyson Ball, V8, V10 & More Vacuum Savings Rounded Up by Retail Egg
04:56aMOTA ENGIL SGPS S A : Engil informs about the execution of a strategic partnership and investment agreement with CCCC
04:55aGout drug Colchicine to be tested as COVID-19 treatment in UK trial
04:55aPERNOD RICARD : Upgraded to Buy by Morgan Stanley
04:55aConsumer confidence and economic climate indicators decrease
04:54aSpanish Lenders BBVA and Sabadell Abandon Merger Talks -- Update
Latest news "Companies"