1min read
PREVIOUS ARTICLE ASX ends down 0.29pc on banks,... NEXT ARTICLE Senior ministers slam Australi...

German sportswear company Adidas is planning to sell its Reebok division, Germany’s Manager Magazin reports, as the group seeks to put an end to its ill-fated investment in the US-focused brand.

Adidas Chief Executive Kasper Rorsted plans to complete the sale by March 2021, the magazine said, without citing where it obtained the information.

Manager magazin said US apparel maker VF Corp and China’s Anta Sports were among the interested parties, without citing sources.

Adidas declined to comment.

VF Corp did not immediately respond to a request for comment while Anta Sports could not be immediately reached for comment outside office hours in China.

Shares in Adidas jumped as much as 3.5 per cent on the report, reflecting hopes for a sale following repeated calls to dispose of Reebok from investors who criticised a lack of progress in turning around the business.

The German company bought Boston-based Reebok for $US3.8 billion ($A5.3 billion) in 2005 under Rorsted’s predecessor Herbert Hainer, aiming to take on US arch rival Nike on its home turf.

Last year, however, Adidas wrote down Reebok’s book value by nearly half compared with 2018, to 842 million euros ($A1.4 billion).

The unit’s sales fell 44 per cent in the second quarter of 2020 to 228 million euros, leading to its parent taking impairment charges in the period.

Rorsted had flagged in March that Reebok’s role within the group would be decided as part of Adidas’ new strategy to be unveiled next year.