Change in the business model in China for Wolverine brands
Footwear group Wolverine Worldwide has announced the sale of ownership of the business in China of two of its brands, Saucony and Merrell. The buyer is China-based sports footwear brand Xtep.
It first formed a joint venture with Xtep in 2019 to launch the Merrell and Saucony brands in China. Now, Xtep has bought Wolverine’s share of that Chinese joint-venture business. It will pay Wolverine around $60 million for its share.
Separately, Wolverine has also sold the remaining part of its in-house leather business to a Thailand-based leather manufacturer called Interhides for $9 million.
“We’ve taken fast, bold, and decisive actions to stabilise the company, while working to transform Wolverine Worldwide for the future,” said chief executive, Chris Hufnagel. “Our actions over the past four months have served to simplify our business model, reduce our cost structure, and strengthen our balance sheet. While our work isn’t done, we enter the new year with a clear vision for the future.”
Image: Saucony.
