Adidas and Rebook to split, media reports state

Adidas divulge their plan to burden off US fitness brand Rebook, sprang as the company anticipated congruous investment due to less profit observed in years.

According to CEO Kasper Rorsted “Reebok and Adidas will be able to significantly better realize their growth potential independently of each other.” “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 German sportswear giant on Tuesday recorded a statement that it has decided to begin a formal process “aimed at divesting Reebok”

Adidas new five-year strategy revealed their stance to sell Reebok which will be published on March 10. It bought the US label 15 years ago in a bid to expand its reach in Nike’s (NKE)’s home market. Reebok at the time had apparel deals with the National Basketball Association (NBA) and the National Football League (NFL).

The brand has disappointed with its underperformance in recent years and lost market share. According to financial statements, It now accounts for just 7% of Adidas’ sales, down from about 18% in 2010.

Adidas, which acquired Reebok in 2006 for $3.8 billion, will report the brand as “discontinued operations” from the first quarter of 2021.