HERZOGENAURACH, Germany—Adidas is poised to get rid of a shoe that doesn't quite fit.
The company recently disclosed plans to divest the Reebok brand, which it acquired in 2006 for about 3.7 billion.
According to details issued as part of Adidas' five-year strategy, the company said teh Boston-based Reebok brand has been struggling recently, and likely will be sold at a loss.
"After careful consideration, we have come to the conclusion that Reebok and Adidas will be able to significantly better realize their growth potential independently of each other," CEO Kasper Rorsted said in a statement. "We will work diligently in the coming months to ensure a successful future for the Reebok brand and the team behind it."
Adidas reported a strong finish to 2020, with a return to growth in the fourth quarter thanks to a 43 percent increase in e-commerce.