Recently, a piece of news that has attracted widespread attention has come.
The high-profile fashion brand champion is in the process of being taken by the parent company**.
As a member of the Hanesbrands Group, Champion is loved by consumers for its unique American casual and sporty style. Over time, Champion has encountered severe challenges from the market.
At present, the first round of bidding has entered the first round of bidding, with a bid price of up to 1.4 billion US dollars, equivalent to about 10.1 billion yuan.
The bidding saw the emergence of heavyweight potential buyers such as Authentic Brands, the parent company of Forever 21, G-IIII Apparel, the parent company of Karl Lagerfeld, and WHP Global.
The reason why Champion is facing the situation of being ** by the parent company is due to the decline in sales for seven consecutive quarters and the high debt ratio of the parent company Hanesbrands.
As a leading company focusing on underwear and sportswear, Hanesbrands not only includes two major brands, Champion and Hanes, but also well-known brands such as PlayTex and Wonderbra.
Even so, the group is still under financial pressure, with its share price falling from around $20 in 2021 to $4 to $5 today, leaving it heavily indebted.
Hanesbrands repaid $500 million in debt in 2023 and plans to reduce debt further this year, but net sales still fell 96%, and the Champion brand accounts for about one-third of the group's sales. Such a decline in performance undoubtedly exacerbated the decision of **champion.
In the Chinese market, Champion was once popular, thanks to the "spontaneous delivery" of many celebrities.
Unfortunately, with the changes in the market environment, Champion's performance in China has also been challenging.
Especially after closing its first *** store in Sanlitun, Champion seems to be going through a transformation from a high-end fashion brand to a more popular brand.
Still, in the last year, Champion showed signs of growth in the fourth quarter, which could be a silver lining to the brand's future potential.
The partnership between Hanesbrands and Belle International has granted Belle the rights to design footwear and accessories in China, in an attempt to revitalize the brand through the power of partners.
Recently, Champion also announced that traffic idol Wang Junkai will become its brand ambassador in Greater China, and whether this strategy can effectively attract young consumers and stimulate sales growth remains to be tested by the market.
Tube Ga Spicy Comment feels that Champion has gone from a world-renowned trendy brand to facing the fate of the best, which can be described as ups and downs. Whether it can return to the peak of the past, it is estimated that there is still a way to go. Whether it is champion or other brands, in today's market environment, they are facing great challenges.
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