NIKE to sell Umbro brand

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ChicagoBlue

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NIKE selling UMBRO

THIS is why we are going Nike in 2013!

Nike Inc. (NKE), the world’s largest athletic-shoe maker, is selling the Umbro and Cole Haan brands after failing to turn the acquisitions into growth machines.
The transactions are expected to be completed within a year, the Beaverton, Oregon-based company said today in a statement. Nike acquired Umbro, the U.K.-based soccer-apparel and footwear brand, in 2008 for $567 million.

Nike, led by Chief Executive Officer Mark Parker, is selling Umbro and Cole Haan to focus on its biggest brands. Umbro’s sales in the fiscal year ended May 31, 2011, were little changed at $224 million, and Nike wrote down the value of the unit by $240.7 million in 2009. Umbro wasn’t profitable, according to Chris Svezia, an analyst for Susquehanna Financial Group in New York.

“They really haven’t done the best job on execution with acquisitions,” Svezia said today in a telephone interview. “Nike bought Umbro at the peak of the market, they’ve already taken a writedown, it’s not a profitable business, so why bother keep throwing money at it? They are looking to cut their losses and move on.”
Click to expand...
 
Nike Inc. (NKE) (NKE), the world’s largest athletic-shoe maker, is selling the Umbro and Cole Haan brands after failing to turn the acquisitions into growth machines.

<a class="postlink" href="http://www.businessweek.com/news/2012-05-31/nike-s-plan-to-sell-umbro-continues-mixed-record-on-deals" onclick="window.open(this.href);return false;">http://www.businessweek.com/news/2012-0 ... d-on-deals</a>

So why City are going NIKE is fairly obvious.
 
a good example of a failed acquisition, they just didn't have the same motives. umbro seem too focussed on heritage and kit design (which is a good thing), while nike seem to value this less and concentrate on churning out millions of kits
 
I thought Umbro was doing reasonably well. Especially after the deals with us and New Yor Cosmos.
 
mansour's tow ropes said:
a good example of a failed acquisition, they just didn't have the same motives. umbro seem too focussed on heritage and kit design (which is a good thing), while nike seem to value this less and concentrate on churning out millions of kits
Click to expand...

Erm, it was Nike who set Umbro up to be exactly that. The whole Tailored thing came after. Remember just how dire Umbro gear was and how tarnished a brand it was before the acquisition. Nike did amazing things with Umbro, but have taken the decision that it duplicates their existing Nike Football division. Sad move but I sort of understand it.
 
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