Nike, Inc. has apparently decided to de-emphasize a mass retail
strategy first announced in 2004 after the company acquired the Starter
business and formed the Exeter Brands Group to build and service brands
in the value retail channel. NKe announced last week that it had
reached a definitive agreement to sell the Starter brand to Iconix
Brand Group, Inc. for $60 million in cash.
Nike, Inc. acquired the broader Starter business, which included the
Starter, Team Starter and Asphalt brand names, as well as master
license of the Shaq and Dunkman brands, for $43 million. Starter
is distributed primarily in the U.S. through Wal-Mart, and
internationally through licensees. Nike will apparently continue
to manage the Shaq business until the master license expires in
September.
>>> The
$65 million sale is pocket change for NKE. This is all about
Wal-Marts refocused emphasis on price and Nike CEO Mark Parkers
refocused strategy on NKEs core assets
>>> Word is the Payless/Tailwind project will be canned soon as well…
