BOSTON (ProOmani/CNN) — Adidas says it is going to offload struggling US health model Reebok, which relies in Boston, as a part of a strategic overhaul.
The German sportswear firm mentioned in a press release on Tuesday that it has determined to start a proper course of “geared toward divesting Reebok” following a evaluate of the enterprise.
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“After cautious consideration, we’ve come to the conclusion that Reebok and Adidas will be capable to considerably higher notice their development potential independently of one another,” CEO Kasper Rorsted mentioned. “We are going to work diligently within the coming months to make sure a profitable future for the Reebok model and the group behind it,” he added.
The choice to promote Reebok was made as a part of a brand new five-year technique that Adidas will unveil on March 10.
Adidas acquired Reebok for $3.8 billion in 2006 when the corporate was based mostly in Canton. Reebok moved its headquarters from Canton to Boston’s Seaport district in 2017. It additionally opened a flagship retail retailer there at 25 Drydock Avenue.
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Adidas mentioned it is going to focus efforts on strengthening its personal model within the international sporting items market. “The long-term development alternatives in our business are extremely engaging, significantly for iconic sports activities manufacturers,” Rorsted mentioned.
Adidas will report the Reebok model as “discontinued operations” from the primary quarter of 2021.
(© Copyright 2021 ProOmani Broadcasting Inc. All Rights Reserved. CNN’s Hanna Ziady contributed to this report.)
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