Reidock’s revenue dropped 42% in the second quarter due to Corona. Adidas bought Reebok in 2006 for $ 3.8 billion
German giant sportswear company Adidas AG is considering selling its flagship brand Reebok. A source familiar with the matter quoted international media reports as saying that the company would decide in the coming months whether to proceed with the sales process. According to the source, the internal review is currently in preliminary stage to sell Reebok.
Reebok shares rose
Reebok shares rose 3.4 per cent in Frankfurt Trading after news of the sale came to light. On the other hand, Adidas spokesperson says that we do not react to market speculation. After becoming Chief Executive Officer (CEO) of Adidas in 2016, Casper Rorstad has repeatedly given rise to rumors that he wants to sell the Reebok brand.
CEO closes Reebok’s under-performance store
Adidas CEO Rorstad has closed Reebok’s under-performance store. Also approved the expiry of some licensing deals. In addition, Roersted has cut Reebok sales and expenses. After turning profitable in 2019, Rorstad had hoped that they could register sales growth on the strength of new brands such as CrossFit Nano and Floatride Run.
Reebok was more impressed by Adidas in Corona
According to the company, the Reebok brand has been affected more than Adidas during the Corona epidemic. In the second quarter, Reebok sales at the Germany level fell by 33 per cent. At the same time, there has been a 42 percent decline in revenue. According to manager magazine, VF Corp, the parent company of the Timberland and North Face brands, and Ant International Group Holdings of China have expressed a desire to buy Reebok.
Adidas bought Reebok in 2006
Reebok was bought by the German company Adidas in 2006 for $ 3.8 billion. According to the magazine, Rorstad had hoped to raise 2 billion euros to about $ 2.4 billion from Reebok’s sales before the epidemic. However, now Rorstad can sell Reebok for less than this amount.