Adidas settles over Rockport bankruptcy dispute
German-headquartered Adidas AG has agreed to a settlement in its Rockport bankruptcy dispute.
Adidas bought Rockport as part of its takeover of Reebok in 2005 and sold the brand a decade later.
Rockport was placed in Chapter 11 bankruptcy protection in May of this year, and in July a rescue plan was lodged by CB Marathon, an affiliate of Charlesbank Capital Partners, to take over the ailing business.
However Adidas and Reebok challenged that, lodging a claim for more than $70 million to recover unsecured claims from Rockport.
According to website Law 360 Adidas agreed to a payout of $8 million from its $54 claim, a settlement approved by a Delaware bankruptcy judge on Monday, clearing the way for the same to CB Marathon, subject to final approval from the courts.