Authentic Brands Group has agreed to acquire Champion, an athletic apparel label, from HanesBrands Inc. However, no formal agreement has been signed yet. Sources say Delta Galil, Sycamore Partners, G-III Apparel and WHP Global were also interested in buying Champion.
HanesBrands had put up Champion, its second-largest label, for sale in 2023 for $1.4 billion after poor sales for the brand in recent years. The clothing company hired Goldman Sachs & Co. and Evercore to look into strategic options for Champion. Reports highlight that Champion’s sales dropped in the past two years, owing to less collaboration with names like Supreme and Rick Owens. The brand’s global sales fell by 23 percent in the fourth quarter of 2023. The drop in sales was attributed to strategic changes and the challenging sports apparel market.
HanesBrands was trying to breathe new life into Champion by shifting its mix and focusing on product and channel segmentation. In November 2023, a spokesperson for HanesBrands said they were in the initial stages of evaluating strategic options and the right path forward for the global Champion business. “At the same time, we 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.”
Champion is one of the best-known sports brands on the market.
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