Adidas is said to be preparing to offload Reebok by March 2021

Adidas is said to be preparing to offload Reebok by March 2021

German sporting goods giant Adidas is said to be mulling a sale of its Reebok business, which it acquired in 2006 for US$3.8bn.

Adidas has an internal team responsible for the move in place and confidentiality agreements on the matter have been signed, according to a report published by Manager Magazin.

The article claims the German firm will have completed the deal by March of next year. 

A report published by Bloomberg, citing Manager Magazin, says apparel powerhouse VF Corporation is among the interested parties, along with China's Anta International Group Holdings.

"While Adidas chief executive officer Kasper Rorsted had hoped for about EUR2bn (US$2.4bn) from selling Reebok before the pandemic, he would now be content with less than that amount," the magazine said.

A spokesperson for Adidas told just-style: "As a matter of company policy, we do not comment on market rumors."

The company reported a loss for the second quarter ended 30 June as net sales tumbled by more than a third amid temporary store closures related to the Covid-19 pandemic.

In a trading update published on 6 August, Adidas said it incurred a net loss from continuing operations of EUR306m, compared to income of EUR462m in the prior-year period.

Revenues decreased 34% in currency-neutral terms, and in Euro terms were down 35% to EUR3.58bn from EUR5.51bn last year.

Sales at the company's namesake brand fell 33%, while Reebok revenues were down 42%, reflecting the brand's higher exposure to the US market.