US footwear and apparel retailer Wolverine World Wide Inc. has taken an important step forward in its ongoing reform efforts.
On Thursday, the group announced the sale of the Sperry brand to the US fashion and media group Authentic Brands Group (ABG) and the Canadian shoe retailer Aldo Group. Wolverine World Wide estimated the income from the transaction, which was completed on Wednesday, at around 130 million US dollars (118 million euros). According to its own statements, the group wants to use the sales proceeds to pay off debts.
CEO Hufnagel sees “next step towards turnaround”
The parent company of brands such as Saucony, Merrell, Wolverine and Sweaty Betty is currently working on streamlining its business activities and has already divested itself of numerous divisions over the past few months. In this context, the sale of Sperry has been on the agenda for a long time.
CEO Chris Hufnagel, who has led the group since mid-August, explained the background to the transaction that has now been completed: “The sale of the Sperry brand is the next step in the turnaround and our strategic transformation,” he explained in a statement. “In a very short period of time, we have fundamentally redesigned Wolverine Worldwide by streamlining the portfolio, reducing our debt and redesigning the organization to improve performance and profitability.” With the corresponding measures, the group is “increasing the capacity to to invest in our brands and platforms,” says Hufnagel.