VF Corp to Sell Dickies to Bluestar Alliance for $600M
VF Corp has announced that it is selling its workwear brand Dickies for $600 million in cash to brand management company Bluestar Alliance. The deal comes as the apparel maker is undergoing a turnaround and navigating rising economic uncertainty. Dickies, which VF bought for about $820 million in 2017, has been facing persistent sales declines for over a year. The company on Monday said it expects the Dickies transaction to close by the end of this year.
Total Retail's Take: In a move designed to infuse cash into the organization, VF Corp is selling off Dickies, which has been challenged to win market share in the competitive workwear category. The deal should enable VF Corp to further invest in its three core brands, The North Face, Vans, and Timberland.
"We continuously evaluate our portfolio and this transaction will enable us to bring our net debt level down and will be accretive to our growth on a pro-forma basis," said VF's CEO Bracken Darrell.
Bluestar Alliance, which owns and manages a variety of consumer brands, including streetwear luxury brand Palm Angels, will now be responsible for trying to jump-start Dickies' sales and customer growth.
Joe Keenan is the editor-in-chief of Total Retail. Joe has nearly 20 years experience covering the retail industry, and enjoys profiling innovative companies and people in the space.
