Reebok, the sportswear company that is up for sale by its parent company Adidas, has reportedly received a bid of $1 billion from Authentic Brands Group. This bid from Authentic Brands Group, which owns various popular brands such as Barney’s, Juicy Couture, Nautica, Nine West, and Frye, is significantly less than what Adidas initially paid to acquire Reebok back in 2006, which was $3.8 billion.

Adidas purchased Reebok with the intention of competing with its main rival, Nike. However, Reebok’s underperformance over the years has led to Adidas seeking separation from the brand. This $1 billion bid from Authentic Brands Group aligns with the evaluations made by industry observers since February, but neither Adidas nor Authentic Brands Group has confirmed or denied these reports.

Earlier this month, there were also reports that Adidas was expecting offers from Chinese groups like Anta Sports, Li Ning, and Fila. However, due to the ongoing Chinese boycotts on Western brands related to the forced labor controversies in Xinjiang, these plans have faced difficulties. Another potential buyer that has shown interest in acquiring Reebok is Cerberus Capital Management, a New York-based investment firm.

In 2020, Reebok experienced a decline in sales of 19% to 1.4 billion euros, which is less than half of the revenue generated in 2005 before Adidas acquired the brand. Investors in Adidas have identified Reebok as a hindrance to the group’s development. In fact, back in 2014, Adidas already considered selling Reebok for 1.7 billion euros, with potential buyers including a Thai mogul and Emirati investment funds.

In recent years, Reebok has undergone a restructuring process that included reducing its retail network and making revisions to its lifestyle and training catalogs. The brand’s creative direction is now led by designer Kerby Jean-Raymond, and collaborations with artists such as Cardi B have become more frequent.

Useful links:
1. Business of Fashion – Authentic Brands Group Bids $1 Billion for Reebok
2. Reuters – Authentic Brands Group Offers $1 Billion to Acquire Reebok