Thread regarding Adidas layoffs

Adidas Explores Possible Sale of Reebok!

https://www.bloomberg.com/news/articles/2020-10-22/adidas-is-preparing-sale-of-reebok-brand-manager-magazin-says

Adidas AG, the German sportswear giant, is exploring a sale of its Reebok brand, according to a person familiar with the matter.

The company will decide in the coming months whether to proceed with a sales process, said the person, who asked not to be identified because deliberations are private. The internal review is in the early stages, the person said.

A spokeswoman for Adidas said the company doesn’t comment on market rumors. Adidas shares rose as much as 3.4% in Frankfurt trading.

Since taking over as chief executive officer of Adidas in 2016, Kasper Rorsted has repeatedly parried rumors that he was looking to sell the brand. He closed under-performing Reebok stores and allowed some licensing deals to expire, cutting sales at the long unloved sporting label but cutting expenses even more.

After Reebok finally regained profitability by early 2019, Rorsted expressed hope that he could now generate sales growth with new footwear lines like the CrossFit Nano and the FloatRide Run. He compared overseeing Adidas and Reebok to being like a parent who loves both his children equally.

Reebok in the pandemic has suffered more than the Adidas brand. While sales at the German label fell 33% in the second quarter, Reebok’s revenue fell 42%, the company said.

Manager Magazin reported on the review earlier Thursday, and said interested parties include VF Corp., which owns the Timberland and North Face brands, as well as China’s Anta International Group Holdings.

While Rorsted had hoped for about 2 billion euros ($2.4 billion) from selling Reebok before the pandemic, he would now be content with less than that amount, the magazine said.

The German company acquired Reebok for $3.8 billion in 2006.

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Adidas plans to sell ailing Reebok business by Matrch 2021!

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.

https://finance.yahoo.com/news/adidas-sell-reebok-manager-magazin-100900746.html

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