Sportswear maker Adidas plans to auction its Reebok to prevent it from being affected by a political row over possible forced labor in China's western Xinjiang region. As per Fashion Network, Adidas bought the US fitness label in 2016 to compete with arch-rival Nike. However, its sluggish performance is compelling Adidas to sell the brand for around €1 billion ($1.2 billion). Adidas expects China’s Anta Sports and Li Ning to bid for the brand in the first round. It also hopes to attract financial investors including TPG, Sycamore, Cerberus and Apollo.
However, Chinese buyers may not be interested in this proposal due to consumer’s boycott of Western fashion brands in the country over comments they did not use cotton sourced from Xinjiang. In April, Shanghai Half Marathon scrapped plans to provide runners with Adidas-branded T-shirts.
Adidas is marketing Reebok off 2025 earnings before interest, tax, depreciation and amortization (EBITDA) of more than €200 million with expected annual revenue growth of 10 per cent. The brand’s recent collaborations with celebrities like Cardi B and a refreshed focus on women's apparel have put the brand in a better place.