Wolverine Worldwide has successfully offloaded its Sperry footwear brand to brand management firm Authentic Brands Group. Aldo Group, a Canadian retail group, has, at the same time, been appointed as the brand’s North American partner and will be responsible for wholesale, e-commerce and stores, Authentic said in a press release. Aldo will also work with the brand on the footwear’s design, production and global distribution. Aldo already works closely with Authentic on brands such as Roxy and Brooks Brothers.
The transaction was finalized on Jan. 10, and in a press release, Wolverine announced that the proceeds from the sale would enable them to pay off approximately $130 million in debt in Q1 of 2024, consequently strengthening their balance sheet.
“The sale of the Sperry brand is the next step in our turnaround and strategic transformation,” said Chris Hufnagel, President and CEO of Wolverine Worldwide. “We conducted a rigorous process that considered a comprehensive set of strategic alternatives for the brand, and we believe this is the best outcome for the company and our vision for the future.”
Hufnagel noted that in the short term, the company has executed a significant restructuring, streamlining its portfolio, reducing debts, and reorganizing to enhance its overall performance and profitability. “These efforts have increased the company’s capacity to invest in our brands and platforms, and I am excited about the next chapter in our turnaround – focused squarely on building consumer-obsessed global brands and delivering greater value for our shareholders.”
Wolverine Worldwide acquired Sperry from Collective Brands in 2012 as part of a $1.23 billion deal that also included the Saucony, Keds (which it sold in February 2023 for $83.6 million in cash to North American retailer Designer Brands Inc.) and Stride Rite brands. Back in May last year, Wolverine announced that it was looking for strategic alternatives for Sperry to focus on its other businesses.
Authentic is reportedly planning to expand Sperry’s product offering to include rainwear, sportswear, bags and accessories to increase the brand’s market share worldwide.
