Adidas mulling to sell its Reebok division

Adidas mulling to sell its Reebok division

In a major development, German sportswear company Adidas is planning to sell its Reebok division, as the group seeks to put an end to the ill-fated investment in the US-focused brand.

Adidas plans to complete the sale by March 2021, the magazine said, without citing where it obtained the information. The report said that Adidas had written down the book value of Reebok by nearly half to 842 million euros ($995 million) since 2018 but did not specify a possible sale price.

The magazine said VF Corp and China’s Anta Sports are considered to be among the interested parties.

Adidas declined to comment.

Also Read: Kurl-on appoints Jyothi Pradhan as its new CEO

Shares in Adidas jumped on the news and traded 3.3 percent higher at 1105 GMT, reflecting repeated calls by investors to dispose of Reebok, impatient with the lack of progress to turn around the business.

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

Also Read: Shoppers Stop appoints Venugopal G Nair as new CEO