Sportswear company Adidas has announced it will pursue formal plans to divest its Reebok brand.
Adidas purchased Reebok in 2005 for $3.8 billion in the hopes the basketball-friendly brand would boost the company’s reach in the U.S.
The brands planned on taking on rival Nike with the expanded footprint.
Instead, the Reebok brand lost partnerships and market share, and now accounts for just 7% of Adidas’s sales.
Despite a turnaround plan that brought Reebok back to profitability in 2018, the pandemic had a greater impact on Reebok than on Adidas.
Adidas now says it wishes to focus on strengthening its own brand in the U.S.
Potential buyers, according to CNN, could be VF Corp., the parent company of The North Face, or Authentic Brands Group (ABG).
ABG owns the business operations of basketball great Shaquille O’Neal, who said in 2019 that he’d love to be a part owner of Reebok.