Adidas is reported to be planning to sell its troubled Reebok division according to German magazine Manager.
Chinese sports shoe specialist Anta Sports and US apparel company VF Corp have expressed interest in the business, according to the report.
Citing unidentified sources, Adidas CEO Kasper Rorsted wants to complete a sale of Reebok by March next year. Last March he suggested the future of Reebok in the company would be considered as part of a broader review scheduled to be released next year.
None of the three companies mentioned initially responded to enquiries by Reuters seeking further information.
The German report resulted in Adidas’ share price surging 3.5 per cent in late trading, reflecting investor desire for the ailing US-focused shoe brand to be divested as it is seen to be impacting its parent’s overall performance. Reebok’s total sales fell by 44 per cent in this year’s second quarter to $269 million.
Adidas bought Reebok in 2005, paying US$3.8 billion, but the company’s value was written down by almost half last year to $994 million.