Blog: Leonie BarrieSkechers bid for Heelys set to roll on?

Leonie Barrie | 15 August 2008

Skechers seems determined to get a piece of the wheeled action, having just made a second bid for wheeled footwear maker Heelys. Its offer of US$142.8m or $5.25 a share beats the $4.75-5.10 per share which was tabled – and rejected – at the end of May.

So why is Skechers so keen to buy its rival? Just two weeks ago Heelys swung to a second quarter loss of $0.4m, from a profit of $12.8m in the same period a year earlier, as sales tumbled 75% to $18.2m from $74.3m. And Heelys has been beset with problems, not least of which are fears that its shoes are little more than a passing fad. It has also been saddled with high levels of inventory after retailers over-ordered and the sneakers started to fall out of favour with fickle teens and tweens.

On the positive side, Heelys could help Skechers build its children’s business, and a deal would help the Heelys brand to grow internationally through Skechers’ own stores and global distribution network.

All the indicators, though, seem to suggest Heelys will reject this offer again – perhaps opening the floor for a rival bid. So it really does look as though this deal is set to roll on a while longer.

US: Skechers tables $143m bid for Heelys


BLOG

Why digital supply chains are top of mind

Confirmation that digital supply chains are top of mind for apparel industry executives came last week with the latest plans from global sourcing specialist Li & Fung....

BLOG

Navigating global political frictions and economic uncertainty

As a barometer of the issues top of mind for apparel sourcing executives, it is hard to beat the annual Prime Source Forum in Hong Kong. ...

BLOG

Trump and Brexit generate more confusion

Over the past month, Donald Trump and his team failed to offer any clear plan to ensure Americans would "Buy American, Hire American" - while the British government's attempts to clarify the specifics...

BLOG

Bangladesh works to resolve labour activist issues

The Bangladesh government was forced to respond late last week to pressure over its crackdown on labour activists after a number of global brands and retailers, including H&M and Inditex announced pla...

just-style homepage



Forgot your password?