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Tag: Rockport

  • Adidas Settles for $8 Million in Rockport Dispute

    Adidas Settles for $8 Million in Rockport Dispute

    German-headquartered Adidas AG has agreed to a settlement in its Rockport bankruptcy dispute.

    Adidas bought Rockport as part of its takeover of Reebok in 2005 and sold the brand a decade later.

    Rockport was placed in Chapter 11 bankruptcy protection in May of this year, and in July a rescue plan was lodged by CB Marathon, an affiliate of Charlesbank Capital Partners, to take over the ailing business.

    However Adidas and Reebok challenged that, lodging a claim for more than $70 million to recover unsecured claims from Rockport.

    According to a news, Adidas agreed to a payout of $8 million from its $54 claim, a settlement approved by a Delaware bankruptcy judge on Monday, clearing the way for the same to CB Marathon, subject to final approval from the courts.

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  • Footwear company Rockport saved from bancruptcy

    Footwear company Rockport saved from bancruptcy

    Struggling footwear retailer Rockport Group has been rescued from Chapter 11 bankruptcy by private equity company Charlesbank Capital Partners.

    Subject to approval by the US Bankruptcy Court of Delaware, Charlesbank’s subsidiary CB Marathon will acquire substantially all of Rockport’s assets, including the global wholesale, independent and e-commerce operations and all of its Asian and European operations and retail stores. However, as part of its ongoing Chapter 11 process, Rockport has begun the orderly wind down of its North American retail operations, which will be completed by July 31.

    Boston-headquartered Rockport has been designing and selling mens and womens footwear since 1971, its product range skewed to outdoor sports shoes. The company said in a statement the sale to Charlesbank “will enable Rockport to ensure the continuation of its deep heritage and great brands and enhance its focus on its global wholesale, independent and e-commerce businesses”.

    “Throughout this process and following the sale to Charlesbank, Rockport customers can continue to shop Rockport’s… brands and diverse assortment of footwear at leading department stores and specialty retailers around the world, as well as through the company’s e-commerce platform.”

    The company said the financial strength of Charlesbank will better position Rockport in today’s evolving retail landscape. Following the sale, Rockport will have significantly less debt which will help position it for growth.

    Charlesbank was named as the so-called “stalking horse bidder” during Rockport’s court-supervised sale process under the Bankruptcy Code. However, the court required an open bidding process before approving the takeover offer.

    After the bidding deadline last Friday, Rockport talked to “a number of potential buyers” but did not receive any bids competitive with Charlesbank’s so a proposed auction was cancelled.

    Alvarez & Marsal served as restructuring advisor through the process.

  • US investor buys into Mitra Adiperkasa

    US investor buys into Mitra Adiperkasa

    US private-equity company General Atlantic has made its first investment in Indonesia by buying into lifestyle retailer Mitra Adiperkasa (Map).

    It has subscribed for Rp1.08 trillion (US$80.5 million) in bonds issued by Map which are convertible into shares in its F&B subsidiary Map Boga Adiperkasa (MBA), which runs Cold Stone Creamery, Godiva, Krispy Kreme, Pizza Express and Starbucks in Indonesia. It has more than 300 stores across 24 cities, and has more than doubled its store count over the past five years.

    Map runs multi-channel retail concepts in Indonesia across a diversified portfolio of department stores, sportswear, specialty fashion, F&B, and lifestyle products. It has nearly 2000 retail stores.

    “We believe the rapid rise in Indonesia’s middle and young working classes, the increase in this population’s disposable income, and the continued rural-to-urban migration represents an opportunity for us to strengthen our international food brands and cement our leadership position in the F&B market,” says Map CEO V.P.

    Sharma. A portion of the investment money will be used to accelerate the F&B division’s network expansion.
    “Indonesia’s domestic consumption comprises more than half of gross domestic product, and consumption patterns are increasingly shifting toward modern and aspirational lifestyle brands,” says General Atlantic Southeast Asia head Wai hoong Fock. “These secular trends position MBA’s food & beverage portfolio well for further expansion.”

    Regional commitment

    The partnership, General Atlantic’s first investment in Indonesia, indicates its commitment to long-term market prospects in South-east Asia,” says Fock, who joined General Atlantic from CVC Capital Partners last year to lead its South-east Asia investing program. He is based in the firm’s Singapore office.
    General Atlantic has 18 investment professionals in Asia, based in offices in Beijing, Hong Kong, Mumbai and Singapore. The firm opened its Singapore office in 2011, investing three years later in Singapore-based online mobile entertainment/communication Garena platform. It has also supported the growth of retail and F&B companies including lifestyle brand Tory Burch, luxury fashion brand Zimmermann, restaurant group Barteca Holdings, urban juice-bar concept Joe & The Juice, community accommodation marketplace AirBNB and transportation network company Uber.

    Map has 1921 retail outlets in 68 cities throughout Indonesia. Its retail concepts include department stores (Debenhams, Galeries Lafayette, Seibu and Sogo), fashion and lifestyle (Crabtree & Evelyn, Kipling, Lacoste, Marks & Spencer, Massimo Dutti, Nautica, Sephora, Swarovski, Topman, Topshop and Zara), sports (Converse, Golf House, Oakley, Payless ShoeSource, Reebok, Rockport, Skechers, The Athlete’s Foot and The Sports Warehouse), F&B (Burger King, Cold Stone Creamery, Domino’s Pizza, Godiva, Krispy Kreme and Starbucks), kids (Kidz Station and Oshkosh B’Gosh) and bookstore Kinokuniya.

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  • Yue Yuen sales rise on retail rollout

    Yue Yuen sales rise on retail rollout

    The world’s largest branded athletic and casual footwear manufacturer and retailer Yue Yuen Industrial says retail and wholesale sales of sportswear in Greater China rose 19.6 per cent in the first nine months of this year, due to an expanding store network.

    Yue Yuen operates more than 6000 retail stores and concessions across Greater China under its own name as well as the international brands it manufactures for.

    Total sportswear sales reached US$1.7 billion compared to US$1.456 billion in the same period last year. Other factors in the growth were the company’s efforts to increase efficiency and a better merchandise selection.

    Sales of athletic shoes were up by 3.4 per cent and sales of casual shoes were down by 5.6 per cent. The total volume of shoes sold increased by just 1.1 per cent to 231.4 million pairs for the period.

    Hong Kong listed Yue Yuen designs and makes shoes for brands including Nike, Crocs, Adidas, Reebok, Asics, New Balance, Puma, Timberland and Rockport as well as operating its own network of retail stores under the YY Sports brand, through subsidiary Pou Shen.

    The increased athletic shoes and sportswear sales helped boost Yue Yuen’s overall revenue by 5.8 per cent to US$6.3 billion and gross profit by 9.1 per cent to $1.422 billion. Total net profit attributable to owners of the company was $285.6 million, up 36.6 per cent year on year, according to figures filed with the stock exchange.

    Pou Shen, which opened 771 new points of sale during the nine months, increased its gross profit by 32.5 per cent to $566.5 million due to management’s strategy to concentrate on the retail business, improved operating efficiency, and better procurement of inventory.

    YY Sport instore wide

  • Sports fashion demand drives Stella sales

    Sports fashion demand drives Stella sales

    Shoe marketer Stella International has reported increased sales in the second quarter on the back of growing demand for sports fashion footwear.

    In the three months to September 30, consolidated revenue from its China retail business and its manufacturing operations amounted to US$569 million, up 4.3 per cent year on year. For the nine months to September 30, revenues totalled US$1.366 billion, an increase of 7.9 per cent.

    “Looking forward, the group expects orders for the group’s footwear products will pick up further towards the end of this year and the beginning of 2016, as its customers continue to expand their global presence and as demand for sports fashion footwear continues to grow,” the company said in a stock exchange filing.

    “Order levels will also be supported by greater efficiency and improved utilisation at the group’s production facilities in inland China and Southeast Asia.

    “The group cautiously expects shipment volumes to reach 58 million pairs by the end of 2015.”

    Stella produces shoes for brands including Clarks, Deckers, Ecco, Rockport, Timberland, Wolverine, Cole Haan, Guess, Jones Group, Kenneth Cole and Michael Kors. It also designs, develops and manufactures footwear for high-fashion brands including Alejandro Ingelmo, Alexander Wang, Armani, Bally, Balmain, Brian Atwood, Givenchy, Kenzo, Marc by Marc Jacobs, Marciano, Miu Miu, Paul Smith, Prada, Sigerson Morrison, Via Spiga and Y3.

    And taking advantage of its manufacturing expertise, the wide acceptance of Stella’s products by brand customers, the company has successfully expanded into the Chinese and global footwear retail market through its own brands Stella Luna, What For, JKJY by Stella and joint-venture brand, Pierre Balmain.

    Stella says it will continue to implement strict cost controls and efficiency improvement measures to preserve its profitability. This includes placing a renewed focus on leveraging its competitive strengths to pursue new promising product segments, such as sports fashion footwear.

    “The group also remains committed to building the long-term competitiveness of its retail business with the opening of new standalone stores and shops-in-shops in quality locations. It will also continue to boost its branding efforts in Europe to further grow the value of its brands among Chinese consumers.”

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