Athletic brand Adidas continues to field offers on Reebok, a subsidiary the German brand confirmed in mid-February 2021 it was working to offload. The latest offer for the brand comes from Authentic Brand Group, which teamed up with Wolverine World Wide to make an offer just over $1 billion, according to the NY Post. Within the past week, investment group Apollo Global Management also made a non-binding offer for the Boston-based athletic brand.
Adidas paid $3.8 billion for Reebok when it purchased the brand in 2006.
Purchase of Reebok is problematic because the brand is losing more than $100 million/year before before interest, taxes and amortization, according the NY Post‘s sources. While it was challenged by the pandemic, Reebok’s revenue in 2020 was $1.5 billion versus $1.8 billion in 2019.
Whatever company acquires Reebok will also need to arrange production because Adidas has stated it will stop manufacturing the shoes following the sale.