The proceeds from the sale of Keds and license of Hush Puppies are expected to generate over $90 million in cash, which will be used to pay down debt and strengthen the company's capital structure.
The Keds brand sale was completed on February 4, 2023, while the Hush Puppies license is expected to become effective on July 1, 2023, the companies said in a joint statement.
“Selling Keds and licensing the Hush Puppies brand for the US and Canada is an important step as we continue to advance our strategy to simplify the portfolio and direct resources to our growth brands. We are confident this will place Wolverine on an accelerated path to improved profitability and long-term shareholder value creation,” said Brendan Hoffman, Wolverine Worldwide’s president and chief executive officer. “We are particularly pleased to have reached this agreement with Designer Brands, a longtime retail partner of ours and a natural fit to guide the iconic Keds brand into its next phase.”
Wolverine World Wide is also in the process of evaluating strategic alternatives for its Wolverine Leathers business.
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