VF Corporation, the American company behind popular brands like Vans, The North Face, and Timberland, has announced its plan to sell nine of its workwear brands. The sale will be carried out through a definitive agreement with Redwood Capital Investments, LLC, a diversified holding company. This move is part of VF Corporation’s strategy to transform itself into a more consumer-oriented and retail-focused company. By simplifying its portfolio and operating model, VF aims to create a more efficient and streamlined business.

The nine workwear brands that will be sold are Red Kap, VF Solutions, Bulwark, Workrite, Walls, Terra, Kodiak, Work Authority, and Horace Small. Notably, the sale does not include the Dickies and Timberland PRO brands.

Steve Rendle, VF’s chairman, president, and CEO, expressed his satisfaction with the agreement, stating that Redwood Capital Investments is the ideal owner to guide these brands into their next phase of growth. The transaction is expected to close in the first quarter of fiscal 2022, subject to customary closing conditions and regulatory approvals. The specific terms of the agreement have not been disclosed.

While VF is divesting some of its brands, it has also made strategic acquisitions in recent years. One notable acquisition was the New York-based streetwear label Supreme, which VF acquired in November. This acquisition reflects VF’s commitment to staying relevant in the ever-changing fashion industry.

In 2018, VF underwent a significant change when it sold its classic denim brands, Wrangler and Lee. This decision allowed the company to focus on its core brands and align its business with market demands.

In its recent financial report, VF Corporation reported a net income of $347.2 million for the third quarter of fiscal 2020, representing a 25% decrease compared to the same period the previous year. While the company’s active and outdoor segments experienced declines, the workwear segment saw a boost in revenues, primarily driven by the Dickies brand.

Overall, VF Corporation’s decision to sell nine of its workwear brands is a strategic move to reshape its business and prioritize consumer-oriented brands. With this pending transaction and its previous acquisitions, VF is positioning itself for future growth and success in the ever-evolving fashion industry.

Useful links:
VF Corporation Brands
VF Corporation Official Website