German based shoes and clothing designer and manufacturer Adidas AG (ETR: ADS) is considering selling its Rebook brand citing that the brand it acquired in 2006 for $3.8 billion has been struggling business wise.
The company held a meeting in which it tabled various strategic options including a possible sale of Reebok brand. Adidas final decision on the matter will be announced on March 10, 2021 when the company will be officially presenting its new strategies.
Shareholders of Adidas have been repeatedly pressuring the company to do away with the Reebok brand due to lack of progress. Adidas said it will choose whether to retain some part or sale the whole brand.
In the third quarter, Reebok posted net sales of 403 million euros ($489.40 million) representing a 7% decline. In the second quarter the company had posted a staggering 44% decline in net sales.
Last year Adidas wrote down the value of Reebok by almost 50% compared to the previous year to 842 million euros.
Last month Adidas said it was expecting to record a decline in overall sales for the remaining part of the year due to re-imposed lockdown in Europe.