Adidas may sell Reebok brand

German sportswear giant Adidas is considering selling its Reebok brand with several names emerging as potential buyers Dr. Martens owner, Permira, and Timberland brand owner, VF Corp.

Adidas, which had made no firm decisions about Reebok, would announce developments in March.

A turnaround plan dubbed "Muscle Up" that Adidas had taken in 2016 revived Reebok's flagging fortunes, increasing sales and profits.

US-focused Reebok's revenue surged by 4 percent to $2.06 billion in 2019, making up 7 percent of Adidas' total annual sales.

However, Reebok's sales plummeted 7 percent in the third quarter, which executives blamed on a slower recovery from the pandemic in North America than in Europe.

Since Adidas acquired the company in 2006 for $3.8 billion, Reebok's popularity has waned.

Reebok once held a major sponsorship deal with the lucrative National Basketball Championship (NBA), but that was assumed by Adidas upon taking over the brand.

It currently has a six-year $70 million deal with the Ultimate Fighting Championship, which is due to end soon.

Last year, Adidas cut nearly in half its estimate of Reebok's value.