BOSTON (CBS/CNN) — Adidas says it will offload struggling US fitness brand Reebok, which is based in Boston, as part of a strategic overhaul.
The German sportswear company said in a statement on Tuesday that it has decided to begin a formal process “aimed at divesting Reebok” following a review of the business.READ MORE: Somerville Woman Accused Of Drunk Driving After Crashing Into Pole In NH
“After careful consideration, we have come to the conclusion that Reebok and Adidas will be able to significantly better realize their growth potential independently of each other,” CEO Kasper Rorsted said. “We will work diligently in the coming months to ensure a successful future for the Reebok brand and the team behind it,” he added.
The decision to sell Reebok was made as part of a new five-year strategy that Adidas will unveil on March 10.
Adidas acquired Reebok for $3.8 billion in 2006 when the company was based in Canton. Reebok moved its headquarters from Canton to Boston’s Seaport district in 2017. It also opened a flagship retail store there at 25 Drydock Avenue.READ MORE: Three Men Charged In Cheating Scheme At Encore Boston Harbor
Adidas said it will focus efforts on strengthening its own brand in the global sporting goods market. “The long-term growth opportunities in our industry are highly attractive, particularly for iconic sports brands,” Rorsted said.
Adidas will report the Reebok brand as “discontinued operations” from the first quarter of 2021.
(© Copyright 2021 CBS Broadcasting Inc. All Rights Reserved. CNN’s Hanna Ziady contributed to this report.)MORE NEWS: Stores Are Closing But This Discount Chain Plans To Move In