The deadline to submit the first-round of bids for sportswear label Champion closed this week, painting a clearer picture of what HanesBrands, its soon-to-be former owner, is expecting to see in return for its sale.
According to sources for WWD, the group has placed a 1.4 billion dollar starting price tag on Champion, with multiple bids now currently being evaluated.
Among the reported interested parties named by the media outlet were Authentic Brands Group and G-III Apparel Group, which notably holds a licensing agreement for Champion’s outerwear products.
The sale process began last year, when the apparel group had appointed Goldman Sachs & Co. and Evercore to oversee various “strategic options” for the label.
Attempts to bolster Champion’s performance had not brought in a positive return, however. Earlier this month, HanesBrands reported that Champion’s US sales decreased 30 percent, driven by “challenging activewear apparel market dynamics”. International sales, meanwhile, also took a 14 percent tumble on a reported basis.
For HanesBrands, the sale would also provide much needed financing, as the company faces a 3.1 billion dollar net debt, as revealed last year.
