Wolverine’s plans are part of a wider initiative to restructure the company, following a 23.7% decline in revenue in Q3.
The plans also see the US apparel company Wolverine Worldwide sell a minority ownership interest in its Merrell and Saucony venture in China.
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The company’s Asia-based Wolverine Leathers business will also be sold to one of Wolverine’s existing materials suppliers Interhides Public Company Limited for $9m.
In a statement, Wolverine’s president and CEO Chris Hufnagel said: “We’ve taken fast, bold, and decisive actions to stabilise the Company today, while working to transform Wolverine Worldwide for the future. Our actions over the past four months have served to simplify our business model, reduce our cost structure, and strengthen our balance sheet. While our work isn’t done, we enter the new year with a clear vision for the future, enhanced ability to invest in our brands and platforms, and ultimately, a better position to deliver stronger returns for our shareholders.”
Wolverine owns a number of successful sports, casual and activewear brands including Sweaty Betty, Saucony, Hush Puppies, Merrell and Cat.
The update comes after Wolverine sold the Keds footwear brand in February 2023 for more than $90m and sold the intellectual property for Hush Puppies in China in August 2023 for $58.8m.
Wolverine also previously sold its US Wolverine Leathers business in August 2023 for approximately $6m.
In August, Wolverine Worldwide’s CEO said he was confident about improving the company’s performance quickly despite downgrading its 2023 outlook following a dip in sales during the second quarter ending 1 July 2023.
When the plans to restructure were originally announced in November 2023, Hufnagel commented: “While market conditions remain challenging, we’re taking the necessary steps to reinvigorate our brands and position the company for profitable growth as conditions improve.”
