EXCLUSIVE: Authentic Brands Group Expected to Be Stalking Horse for Rockport
Rockport and Reebok may soon be part of the same family again.
Authentic Brands Group, which purchased the Reebok business from Adidas last year, is expected to be revealed as the stalking horse bidder for Rockport, the shoe brand that filed for Chapter 11 bankruptcy last week and immediately put itself up for sale.
More from WWD
The Newton, Massachusetts-based Rockport was acquired by Reebok in 1986 and it remained part of that corporation even when both were owned by Adidas. It was sold in 2015 to New Balance and Berkshire Partners, but wound up filing for bankruptcy for the first time in 2018, at which point it was acquired by its current owner, Charlesbank Capital Partners, a private equity firm.
As part of the most recent bankruptcy, Rockport has filed a motion seeking authorization to pursue an auction and sale process that would require interested bidders to submit binding offers to purchase the company.
Although no stalking horse bidder was identified at the time of the initial filing, Rockport did say it had entered into negotiations with a potential purchaser that has significant experience in the industry.
That is expected to be Authentic, whose chief executive officer, Jamie Salter, has made a large number of high-profile purchases over the past several years, including Brooks Brothers, Nautica, Forever 21, Sports Illustrated and others that have annual global retail sales of more than $25 billion. His most recent purchases were Hunter boots and Ted Baker.
Salter could not be reached for comment on his interest in Rockport. However, sources said Authentic’s stalking horse bid is expected to be revealed as early as Tuesday morning following Monday’s federal holiday.
“It’s hard to believe they filed naked,” one source said, referring to the fact that Rockport filed Chapter 11 without revealing a stalking horse bidder. “It seems to indicate that they ran out of time with their banks,” another source speculated, “which is very unusual.”
Other brand management firms such as WHP Global and Marquee Brands are expected to be among the companies that will take a look at Rockport with the thought of bringing it into their portfolios, “but if Authentic wants it, they’ll be hard to beat,” a source said.
In addition to Rockport Co., its subsidiaries — CB Marathon Midco LLC, Rockport IP Holdings LLC, Rockport U.K. Holdings Ltd. and CB Footwear Services LLC — also filed for bankruptcy. Its CEO Gregg Ribatt stepped down and Joseph Marchese of PKF Clear Thinking was appointed chief restructuring officer.
Rockport informed its home state of Massachusetts last month that it may permanently close its headquarters this summer and cut up to 150 jobs.
The comfort shoe brand has been struggling for a number of years. According to court documents filed last week in Delaware Bankruptcy Court: “Despite the restructuring efforts of its current ownership group, Rockport continued to struggle with high overhead costs and weakened demand for its core product lines due to, among other factors, the COVID-19 pandemic. Rockport survived the COVID-19 pandemic but, despite some short-term successes in 2022, was ultimately unable to align expenses with its reduced revenue levels and, as a result, was left with an inadequate liquidity cushion to survive further economic challenges.”
In September 2022, the company retained Stifel, Nicolaus & Co., an investment banking firm, to explore opportunities, including a sale.
In order to continue operating during Chapter 11, Rockport applied for approval to obtain debtor-in-possession financing on June 15.
Rockport was founded in 1971 and produces products under the Rockport, Cobb Hill and Dunham names as well as Prowalker and Total Motion.
Best of WWD
