FILE PHOTO: The Nike swoosh emblem is pictured on a retailer in New York Metropolis, New York, U.S., September 4, 2018. REUTERS/Carlo Allegri/File Picture
(Reuters) – Nike Inc (NKE.N), the world’s largest sportswear maker, is exploring choices for its surfwear model Hurley Worldwide, together with its attainable divestment, in line with folks acquainted with the matter.
Nike’s potential retrenchment from the surfwear market is emblematic of the stance of most main shopper firms in direction of the sector. Surf manufacturers have misplaced their attraction amongst non-surfing customers, who now desire boutique manufacturers and retro streetwear.
Among the many choices that Nike is contemplating for Hurley is an outright sale of the Costa Mesa, California-born model, the sources stated, requesting anonymity as a result of the deliberations are confidential.
It isn’t clear how a lot Nike may fetch by promoting Hurley. Nike declined to remark.
Nike bought Hurley from founder Bob Hurley in 2002 for an undisclosed sum in an effort to develop past athletic-focused attire and into different sportswear for browsing, skating, and snowboarding.
Bob Hurley based the corporate in 1979 and achieved notoriety within the 1970s for shaping the surf board for world champion Wayne “Rabbit” Bartholomew.
In the previous couple of years, the burgeoning urge for food for clothes related to the seashore life-style and tradition waned, to the purpose that former world chief Quiksilver filed for chapter in 2015 earlier than being taken over by personal fairness agency Oaktree Capital Administration (OAK.N).
Mainstream trend has dropped surfwear in favor of athleisure, whereas rising trend is popping towards city streetwear manufacturers like Carlyle-backed Supreme, and reversion seems to be just like the revived sportswear model Fila and Champion.
Final yr, Boardriders Inc, the corporate behind Quiksilver, Roxy and DC Sneakers that’s owned by Oaktree, acquired its struggling Australian rival Billabong, proprietor of its namesake model together with different life-style manufacturers similar to Aspect and VonZipper.
Reporting by Harry Brumpton and Joshua Franklin in New York; Modifying by Christopher Cushing