Authentic Brands Group to purchase Champion from Hanesbrands

Authentic Brands Group (Authentic) is set to purchase Champion from Hanesbrands, the company’s second-largest brand.

Authentic Brands Group to purchase Champion from Hanesbrands. – Authentic Brands Group

According to reports, Authentic has sealed the deal to acquire Champion for slightly over $1 billion. The transaction is anticipated to be finalized by late May or early June.

Hanesbrands confirmed plans to offload Champion last September, as part of its broader strategy to adapt and position all its brands, encompassing innerwear and activewear, for long-term success.

Despite Champion facing challenges such as declining sales and a decrease in collaborations, it garnered interest from various potential buyers, including Delta Galil, G-III Apparel, Sycamore Partners, and WHP Global. Hanesbrands had initially set the asking price for Champion at $1.4 billion.

HanesBrands said in February that net sales for the fourth quarter dove 12% to $1.3 billion, hurt by dismal sales at the apparel maker’s Champion brand, particularly in the U.S and Australia market. 

Global Champion brand sales decreased 23% on a reported basis, as compared to prior year, with U.S. sales decreasing 30%.

Copyright © 2024 FashionNetwork.com All rights reserved.

Source link

Leave a comment

Your email address will not be published. Required fields are marked *