Recently, several sources familiar with the matter have reported that German sportswear company Adidas is planning to sell its Reebok division. Adidas acquired Reebok in 2005. At the moment, the company is exploring the ways to sell its loss-making brand. So far, Adidas has not given any official comments about the deal. Meanwhile, Reebok is undergoing an internal audit which heats rumors of its sale. These speculations were enough to lift Adidas shares by more than 3% on the Frankfurt Stock Exchange. An official announcement about the deal is sure to push the company's shares even higher. Adidas Chief Executive Kasper Rorsted is known for his impatience with inefficient businesses. He does not hesitate to close stores, end a new collection, or even terminate a contract with a celebrity if he considers this unprofitable. Now the focus is on Reebok that could hardly be called a prosperous division. Earlier, Rorsted hoped that Reebok would generate sales growth with new footwear lines such as the CrossFit Nano and the FloatRide Run. He repeatedly compared overseeing Adidas and Reebok to being like a parent who loves both his children equally.
