VF Corp. considers selling off some brands
The owner of The North Face and Timberland is exploring options for nine of its brands.
Apparel giant VF Corp. announced that it is commencing a review of strategic alternatives for the occupational portion of its work segment. VF said that the review is in line with its focus to transform into a more consumer-minded and retail-centric enterprise, with a portfolio of growth-oriented active, outdoor and work brands.
The segment under review consists of primarily nine brands and businesses: Red Kap, VF Solutions, Bulwark, Workrite, Walls, Terra, Kodiak, Work Authority and Horace Small. (It does not include the Dickies and Timberland PRO brands.)
“Divesting these brands would leave VF with a simplified portfolio of higher-growth, consumer-focused brands, while providing financial flexibility to fuel further strategic initiatives and enhance shareholder value,” said Steve Rendle, VF’s chairman, president and CEO, whose brands include Vans, The North Face, Timberland and Dickies.
The brands under review outfit millions of workers in the industrial, service and government sectors and are primarily distributed through the business-to-business channel. Together, they represented approximately $865 million of VF’s fiscal 2019 revenue and approximately 50% of VF’s work segment revenue.