Authentic Brands Group has withdrawn its bid to acquire Rebook from adidas, according to the New York Post.
A retail conglomerate with 30 brands across 5,950 brick-and-mortar stores, ABG made an offer in May to purchase Reebok for $1 billion.
Adidas acquired Reebok for $3.8 billion in 2005.
The potential acquisition reportedly dissolved due to adidas’ demands that ABG operate Reebok as a standalone business, among other stipulations.
ABG planned to integrate Reebok’s U.S. business with Sparc Group, its joint venture with real estate investment trust Simon Property. Sparc operates Aeropostale, Brooks Brothers, Forever 21, and Nautica.
Reebok has been losing momentum in a sportswear market expected to reach $247.4 billion by 2027.
- The brand suffered more than $100 million in losses in 2020, preventing potential buyers from borrowing in order to purchase
- It generated $1.5 billion in revenue last year, down from $1.8 billion in 2019
- It failed to renew its apparel deal with the UFC after a six-year partnership
ABG is preparing for an initial public offering with a target valuation of about $10 billion, according to CNBC.
Adidas will wrap up its next round of bids for Reebok on Aug. 2, with Chinese sportswear manufacturers Anta Sports and Li Ning said to still be in the running.
Buyout firms Advent International, Cerberus Capital Management, CVC Capital Partners, and Sycamore Partners have also expressed interest in purchasing the sportswear brand.