After months of anticipation, it appears that Hanesbrands, Inc.’s Champion brand is on the verge of being acquired by Authentic Brands Group (Authentic). According to a source familiar with the negotiations, reported by Women’s Wear Daily (WWD), Authentic has emerged as the winning bidder in the sale process, with the Champion brand valued at over $1 billion. Although no formal agreement has been finalized, speculation suggests that negotiations could reach a conclusion in the coming week.
Delta Galil, Sycamore Partners, G-III Apparel, and WHP Global were also reportedly in the running for the brand, as indicated by sources cited by WWD.
HanesBrands had previously announced its intent to explore strategic options for the Champion business, highlighting the brand’s recent financial performance challenges. The company reported a decline in global Champion brand sales in the last quarter, impacted by various market dynamics and strategic adjustments. In response to these challenges, HanesBrands CEO Stephen Bratspies outlined a four-pronged strategy aimed at driving shareholder value, which included revitalizing the Champion business.
Despite the anticipated sale, significant questions remain regarding the future of Champion’s workforce, particularly those employed at HanesBrands’ facilities worldwide. As negotiations progress, the fate of Champion’s employees and the brand’s strategic direction under Authentic’s ownership will undoubtedly be closely watched by industry observers.
Authentic has declined to comment on the reported deal.
