Hanesbrands Inc., Winston-Salem, N.C., is reportedly interested in selling its Champion brand, with management firms WHP Global and Authentic Brands Group showing interest in buying it.
According to CNBC, Hanes could decide to sell Champion in an effort to cut costs, after facing pressure from activist investors at Barington Capital Group.
Champion reportedly sees annual sales of about $2 billion, and has been increasingly popular over recent years as it became a sought-after streetwear and sportswear brand among Gen Z and millennials. Despite the prevalence of Champion in modern fashion, though, CNBC reported that Champion’s brand sales dropped 16% year-over-year in the quarter ended July 1.
“We are in the initial stages of evaluation strategic options and the right path forward for the global Champion business, and at the same time, remain committed to advancing Champion’s new, disciplined channel segmentation strategy, energizing the brand and leveraging the work already completed to globalize product design, and segment and streamline our supply chain,” a Hanes spokesperson told CNBC.
While Hanesbrands is putting this option on the table, the company apparently isn’t close to a sale, and would wait until 2024 to make any firm decision.
If WHP were to acquire Champion, they would add it to their portfolio along with Bonobos, which it acquired from Walmart. CNBC reported that WHP is also interested in buying the Sperry brand from its parent company, Wolverine Worldwide.
Authentic Brands owns well-known apparel companies like Aeropostale, Brooks Brothers, and Juicy Couture.
