From Reebok, Adidas To New Balance, Le Bu Finally Applied For Bankruptcy Protection.

The split between Adidas and Adidas is more complex and time-consuming than expected. At the same time, it also faces challenges in the construction and development of logistics network.

Another 40 year old shoe brand in the United States is in trouble.

In May 14th, Rockport introduced bankruptcy protection to the court in accordance with the eleventh chapter of bankruptcy law of the United States, and considered closing some stores to reduce costs.

The brand was created in 1971 by Saul L.Katz and its sub Bruce Katz in Canton, Massachusetts, focusing on the integration of sports technology in the design and more than 55 markets in the world.

It is also the nine largest fashion shoe manufacturer in the world.

According to the announcement of nine Hing Holdings in May 15th, the amount of outstanding accounts receivable owed by Lok step and its Associated company was about $10 million 300 thousand on that notice date.

In 1986, Le step was bought by Reebok, the US brand (Reebok).

After 2006 was bought by Adidas in, it became a sub brand of Adidas group.

In May 2014, Adidas narrowed its front line due to its serious decline in performance and decided to sell its poor performance.

In January 2015, a joint venture between private equity fund Berkshire and Boston running shoe brand New Balance purchased a happy step at a price of US $280 million, lower than the estimated price of more than US $300 million.

After becoming a joint venture owned by Berkshire and New Balance, it has three brands: Yue Bu, leisure line brand Aravon and more high-end Dunham.

At the end of 2017, Lok Bu company considered selling as a whole. At that time, the company hired Houlihan LokeyInc, an investment bank, as a consultant to discuss the restructuring plan, including the sale of equity or debt financing.

Now, after submitting bankruptcy protection, it will be operated in the form of "debtor held" during the eleventh chapter of the case, which means that the company will continue to operate its business in the day-to-day process under the supervision of the bankruptcy court.

Consumers can continue to buy brands in departments and stores around the world, and can also buy them through e-commerce platforms such as their official websites.

According to the documents submitted by the company to the court, Charlesbank Capital, a private equity firm in Boston, intends to acquire most of the stake in Lok step group, which needs approval from the bankruptcy court.

Charlesbank Capital values the global wholesale assets and e-commerce platform of Lok step, and is considering whether to buy its North American retail business.

At the same time, according to the bankruptcy statement submitted by Yue Bu, the sale of ADI has made it a serious hit.

Paul Kosturos, the interim chief financial officer of Lok Bu company, said that the split between Adidas and Adidas was much more complex and time-consuming than anticipated, and the cost would be far beyond the original plan. It was not completed until November 2017.

In this process, joy has encountered operational challenges in the construction and development of the logistics network, and has had a negative impact on revenue, so it has to file bankruptcy protection.

"Over the past 3 years, the company has faced serious economic adverse and operational challenges, which has seriously affected the business performance of its footwear business."

Costello J said.

Why does it take so long to get away from Adidas? At present, the two parties of Adidas and Lok Bu have no public information to talk about it.

A company law lawyer analyzed the lazy bear sports that there was no absolute standard for the completion time of a purchase because of many uncertain factors.

Generally speaking, the paction will be quicker if the terms of business meet all the preconditions.

On the other hand, the failure of Lok step is closely related to the huge operating pressure of the entity store.

Despite its own official website sales platform, joy's wholesale business accounts for 57% of its sales. Wholesalers such as Messi's department store and shoe shoe retail store are its important partners.

According to data from US Green Street consultants, Sears stores, Penny's department stores, Messi stores and some retail outlets have closed some stores in recent years.

In addition, in the long acquisition process, the joy step was neglected in brand building and lost the opportunity to sell to young consumer groups.

Since its inception, being good at marketing has its own characteristics. It has enabled two American presidents Carter and George Bush to advertise. "Although they have different political views, they have chosen to go for joy" and get the name "white house shoes."

Because of the integration of sports and formal shoes, he was very good at marketing himself with sports events before he went to Lok. In 1990, the vice president of happy step wore DresSports shoes to run the marathon to prove the performance of the shoes. In 1993, the mountaineers put on OCKPORT Umbwe Trail mountaineering shoes and climbed the highest peak in Africa. In 2001, it was co operated with sailing events. The main theme was the fast drying performance of the shoes. In 2009, the two generation of Adidas leather shoes, which was integrated with Adidas sports technology, was launched in the 2009, and the shoe appeared in the New York marathon, attracting many people's attention.

Yue Bu entered the Chinese market in 2007. He has invited stars like Donnie Yen, Wu Xiubo and Ekin Cheng. In 2011, he opened 52 retail stores in Shanghai, and developed a second tier city market and opened nearly 100 stores.

But in July 31, 2014, Adidas group suddenly issued a profit warning because of many uncontrollable factors such as exchange rate fluctuations, political conflicts in Ukraine, weak golf market and so on.

Since then, no matter whether it was before sale or during the completion of the paction, there are almost no brand promotion activities, and there have been no eye-catching new works.

Happy step China was bought by Sheng Dao sports in 2015.

At the end of 2015, the micro-blog account "Sheng Le bu" of Sheng Dao operated listed 41 stores in China, nine cities in Beijing, Shanghai, Tianjin, Nanjing, Xuzhou, Wuxi, Kunshan, Xi'an and Hohhot.

But since 2016, these stores have been gradually dismantling.

According to Lloyd's sports, there are now five stores in Beijing, two of which are located in discount stores and top brands. Two are located in outlets and one is in traditional department stores.

Compared with the United States, China's online shopping development is obviously more rapid.

The Ministry of Commerce issued the "2017-2018 China department store retail development report", pointing out that in 2017 the department store industry innovates and pforms rapidly, the traditional format differentiation develops, the number of new stores has been decreasing year by year, and the traditional department store investment has been greatly reduced.

Under the approval of capital market, offline enterprises are accelerating integration to adapt to market development.

In 015 and 2016, Yue Bu opened flagship stores in Jingdong and Tmall.

Take Tmall as an example, so far, only 63 thousand of customers are interested.

Previously, the Clarks, which was regarded as a happy competition product, had 774 thousand customers in Tmall's official flagship store, and the official flagship store in ECCO (Ecco) was 898 thousand.

At present, Le step has 27 independent retail stores in the United States, 33 stores in Canada, and 22 distributors to sell products to 35 countries worldwide.

Before the joy step, Payless, the most famous chain store in America, is famous.

Nine west has filed for bankruptcy protection and readjustment.