HanesBrands (PPAI 191138, Gold) – which operates in the promotional products industry as suppliers Hanes, Champion, ComfortWash and Alternative Apparel – has reportedly found a buyer for its Champion brand.

  • According to reports, Authentic Brands Group has won a bid to acquire Champion from HanesBrands.
  • The cost of the apparel label is said to be over $1 billion.
  • The sale is not yet official, though “rumors” are suggesting that acquisition papers will be signed at some point next week.

“We’re executing a strategy that is based on leveraging our iconic brands and competitive advantages to drive accelerated growth and profitability, while simplifying and focusing all aspects of the business,” HanesBrands CEO Steve Bratspies said back in September when the company announced that it was considering a sale of the Champion brand.

Authentic Brands Group is an intellectual property management company. Champion would be joining a host of other well-known brands under its umbrella, including Barney’s New York, Brooks Brothers, Eddie Bauer and Nine West.

What This Means For Champion

With the acquisition not yet official, there is still no statement from Authentic Brands Group on the future plans for the Champion brand.

  • Champion’s global sales decreased by 16% – down 25% in the United States and 1% internationally – in the second quarter of 2023, according to HanesBrands’ August earning report. Those sales fell by 23% in the fourth quarter of 2023.
  • HanesBrands has been seeking a sale of a Champion since the fourth quarter of 2023.
  • The apparel giant finished last year with a net debt of $3.1 billion, making the sale of Champion a much-needed financial boost.

According to a source, there is a fear that the sale could lead to thousands of employees losing their jobs if Authentic Brands Group opts to outsource manufacturing and other operations to various other companies.

It is also unclear at this point if the Champion brand will remain a supplier of promotional products or if the management company chooses to constrict the brand’s possible marketplaces.