Authentic Brands Group to purchase Champion from Hanesbrands

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Authentic Brands Group to purchase: A major shift has occurred in the fashion business with the completion of the acquisition of Champion by Authentic Brands Group (Authentic) from Hanesbrands. The agreement is said to have been negotiated for just over $1 billion and is anticipated to be finalised by the end of May or beginning of June.

As part of its strategy realignment to optimise its brand portfolio—which covers the innerwear and athletic segments—Hanesbrands announced in September that it intends to dispose Champion. A number of prospective purchasers, such as WHP Global, G-III Apparel, Sycamore Partners, and Delta Galil, showed interest in Champion despite difficulties like falling sales and less prospects for collaboration. The acquisition by Authentic, which was once valued at $1.4 billion, highlights the brand’s continued popularity and the opportunity for expansion under new management.

The underperformance of the Champion brand, especially in the American and Australian markets, was a major factor in the 12% drop in net sales for the fourth quarter that Hanesbrands announced in February. The United States saw a steep 30% decline in sales, while Champion’s global sales fell 23% from the previous year.

With Champion’s acquisition by Authentic Brands Group, the two companies may capitalise on the iconic stature and rich history of the Champion brand in the athletic apparel industry. With Authentic’s history of reviving brands and fueling growth, Champion is now ready to take on the world of global fashion like never before.

Emily Mitchell

Emily's passion for fashion journalism and her keen eye for runway trends make her the ultimate source for the latest fashion news and exclusive insights into the glamorous world of catwalks.

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