The US shoe and clothing group Wolverine World Wide Inc. has streamlined its portfolio. On Wednesday, the company announced the sale of the Keds brand to the Designer Brands Inc. (DBI) group of companies, which includes the shoe retail chain DSW.
Both companies also agreed that DBI will receive the exclusive license for shoes from Wolverine World Wide’s Hush Puppies label for the USA and Canada from July 1st. DSW has been Hush Puppies’ exclusive distribution partner in these countries since last year.
Wolverine CEO Brendan Hoffman put the total cash proceeds from the two newly announced agreements with DBI at $90 million. These funds are now to be used to pay down debt and strengthen the capital structure.
Hoffman also explained the rationale for the move: “The sale of Keds and the licensing of the Hush Puppies brand for the US and Canada are important steps in advancing our strategy, which aims to simplify the portfolio and focus resources on our growth brands.” , he explained. “We are confident that this will provide Wolverine with an accelerated path to increased profitability and long-term value creation for our shareholders.”