Blog: Skechers 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.
Fashion retailer H&M and UK based glove and leather manufacturer Pittards both say they are monitoring the situation in Ethiopia closely after the country's government declared a state of emergency af...
Increasing competition for garment sourcing contracts is seeing China not only being challenged by other countries in Asia, but by sub-Saharan African and even Russian suppliers too. And it is pushing...
The monthly minimum wage for workers in Cambodia's textile, garment and footwear sector is set to rise to $153 from January next year, following a vote on the issue last week. The increase marks a ris...
The results of two highly-anticipated initiatives in the sportswear sphere were revealed last week: the launch of Under Armour’s new UAS lifestyle brand and the first pair of running shoes created at ...
- Fashion fit for the future – strategies for speed
- How PVH is paving the way for connected apparel
- Digitisation to drive new apparel-making models
- Will new Vietnam wage hinder competitiveness?
- Under Armour Lighthouse will disrupt production
- US Q3 in brief - Rocky Brands, Gymboree Corp
- Child refugees found in Turkey apparel factories
- Chinese manufacturer invests $20m in US facility
- Managing change in the move to new tech tools
- Apparel brands "ignoring" refugee abuse in Turkey
- Africa-Med strategic sourcing review – comparing East Africa, North Africa and Turkey
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Apparel (GLOBAL) - Industry Report
- Global Sports and Fitness Wear Market 2016-2020