From CNBC: 2023-11-01 07:00:01

Brand management firms WHP Global and Authentic Brands Group are interested in buying Champion from Hanesbrands, as the parent company considers offloading the sportswear line due to activist investor pressure. Champion has estimated annual sales around $2 billion, but sales have been declining globally. A deal isn’t expected until 2024.

WHP Global and Authentic Brands could be potential buyers for Champion. WHP recently acquired Bonobos and Toys R Us, while Authentic Brands owns Aeropostale and Brooks Brothers. Both firms are known for turning around struggling brands and have operational models to improve performance. Champion’s demand has declined, leading to a drop in sales for Hanesbrands.

Hanesbrands announced an evaluation of strategic options for Champion due to activist pressure for cost cuts and cash generation. Sales of Champion declined by 16% year over year, with a 25% drop in the U.S. and 1% internationally. If Hanesbrands proceeds with a sale, it could select a buyer in 2024. Sales for Sperry, owned by Wolverine Worldwide, have also slumped.



Read more at CNBC: Hanesbrands receives broad interest for Champion sale