Nike Inc. is reportedly looking to sell off its ownership in brands, Cole Haan (shoes/accessories company) and soccer-focused Umbro, to focus on its namesake products.
According to the L.A. Times, the global athletic giant hopes to find a buyer and sell both brands by the end of May 2013, when its fiscal year ends.
Why are they selling? Nike wants to focus on Nike gear, such as its new digital FuelBand fitness tracker, as well as product from Jordan, Converse and Hurley, it said Thursday (May 31).
“Divesting of Umbro and Cole Haan will allow us to focus our resources on the highest-potential opportunities for NIKE Inc. to continue to drive sustainable, profitable growth for our shareholders,” said Nike Chief Executive Mark Parker in a statement.
Having acquired fashion-casual label Cole Haan almost 25-years ago, Nike only recently purchased England-based Umbro in 2008 for more than $580 million in an attempt to strengthen its presence in the soccer market.
Both brands have struggled to make a profit as of late, even with its revenue growing. HUH!?!
Interested parties were unknown at press time.