Adidas tells employees it may sell Reebok | Economic Times

NEW DELHI: German sports goods manufacturer Adidas has communicated to its employees in India about the possible sale of its subsidiary Reebok.The announcement has sent ripples of uncertainty through local ranks of the world’s second-largest sportswear company, especially at a time when retail jobs are at a premium due to the huge number of store closures and loss of revenue during the pandemic.While sources said, private equity firms may be interested to buy Reebok, which Adidas acquired for around $3.8 billion in 2005, employees, who did not wish to be quoted, said the communication could be an early heads-up aimed at cushioning last-minute blows.When contacted by TOI, a global spokesperson for Adidas said, “It has started to assess strategic alternatives for Reebok, including but not limited to a potential sale of the business.”“It is important to note that no decision has been taken to date, and Adidas could also decide to continue owning Reebok as part of its new strategy. A decision will be communicated as part of the official launch of our new strategy on March 10, 2021. The goal of our efforts is to select the alternative for Reebok that promises the best possible growth prospects and future for both the brand and its employees. We are in close contact with our employees to address their questions on the announcement,” she added.Adidas trimmed the number of Reebok stores in India after positioning the Anglo-American footwear and clothing brand as one that is more oriented towards fitness, running and CrossFit.