Is Adidas Selling Reebok? Adidas Reebok Brand Ownership Ending Soon?
- by Nick Demaria
- January 14, 2021
As of December 14, 2020, Adidas said in a public statement that it might sell US fitness brand Reebok as part of a 2021 strategy overhaul. In 2005, Adidas bought Reebok for $3.8 billion to expand its market reach, involving Reebok’s extensive collaborations with the NBA and the NFL. Unfortunately, the beloved brand has been underperforming year over year to fall under 1% of the US athletic footwear hold.
In efforts to boost the brand’s downward slope, collaborations with Ariana Grande and Cardi B helped boost profits in 2018, but the pandemic led to many Reebok and Adidas stores closing. In addition, as more developed athleisure brands excelled like Lululemon and Athleta in workout attire, Reebok declined in the athleisure sector. Reebok has captured audiences in more niche activities like Crossfit, but not enough to lead the reigns.
As Adidas looks forward to its five-year plan, Reebok’s consideration of remaining part of the company or being sold entirely will be announced in a final decision come March 10. Last year, the company cut nearly in half its estimate of the brand’s value, and Reebok accounts for just 7% of Adidas’ sales.
With Reebok’s classic and vintage name, there is a high chance that Reebok will pique the interest of multiple buyers such as interested parties like VF Corp., which owns the Timberland and North Face brands, as well as China’s Anta International Group Holdings, according to the German publication Manager Magazin. Another interested party in the American footwear brands includes ABG’s CEO Jamie Salter. At the same time, ABG partner and former Reebok athlete Shaquille O’Neal has previously said he would love to buy the brand as well.
Stay tuned come this spring to hear if the Reebok brand will stay under Adidas or move onto other feet.