Frankfurt: Adidas is reviewing whether to sell its underperforming Reebok brand, Bloomberg reported on Monday.
The sportswear maker said will announce a decision on March 10, when it presents its new five-year growth plan.
Adidas bought Reebok for $3.8 billion in 2006, and returned the unit to profitability in 2018 with sales edging up 2% last year.
Bloomberg had earlier reported in October, citing a person in the know, that Adidas was planning to offload Reebok.
Kasper Rorsted, who took over as chief executive at Adidas in 2016, had vowed to turn around Reebok, a failing brand at the time.
Rorsted shut underperforming stores and let licensing deals expire, cutting sales at Reebok and slashing costs.
As Reebok began to turn profitable in early 2019, Rorsted shifted focus to boost sales in new labels such as FloatRide Run and CrossFit Nano.
Seizing Reebok’s deep archive of classic footwear and apparel styles may be a the USP for potential buyers.
Bloomberg reported that Reebok may attract interest from rival sports goods firms in Asia and private equity suitors, citing unnamed people aware of the discussions.
German monthly business magazine Manager Magazin reported earlier this year that Reebok suitors include China’s Anta International Group Holdings and VF Corp that owns Timberland and North Face.
Rorsted may have hoped for about €2 billion, or around $2.4 billion, from selling Reebok before the coronavirus pandemic struck, but he would now be happy with less, Manager Magazin said.