Branding Corporation Authentic buys Rockport from bankruptcy proceedings
Rolling with the Punch: Authentic Brands Group Snags Rockport
The Scoop:
- Authentic Brands Group (ABG) has secured approval from the bankruptcy court to acquire Rockport, a footwear brand that filed for Chapter 11 in June. The financial details of the deal remain under wraps.
- With this acquisition, ABG aims to boost its diverse footwear portfolio and extend its brand reach.
- Simultaneously, ABG has inked a long-term licensing agreement with Marc Fisher Footwear to oversee Rockport's design, wholesale, and e-commerce operations in the U.S.
- ABG has previously worked with Nine West, Hunter Boots, and Bandolino, amongst others, and this partnership will allow Fisher to continue expanding Rockport's presence within the men's footwear market.
Behind the Scenes:
- Rockport's journey into Chapter 11 isn't a new one – it's been here before, about half a decade ago. The company cited an "inadequate liquidity cushion to survive further economic challenges" as the reason for its filing in June.
- A dive into Rockport's financials reveals a steep decline in revenues – from $275 million in 2019 to $162 million in 2020, with revenues bouncing back to $203 million in 2022. However, the brand's top five vendors or suppliers are owed nearly $47 million as of the latest court filings.
- To stay afloat post-bankruptcy in the past, Rockport shut down all its U.S. stores, shifted to e-commerce retail, and endeavored to grow its e-commerce wholesale business.
- After the Rockport deal and the recent acquisition of Boardriders, ABG's portfolio now generates over $29 billion in annual global retail sales. The deals are expected to close next month.
- Despite the brand's complicated history and financial ups and downs, ABG is optimistic about Rockport's future. "There is a significant addressable market, presenting opportunities for the brand to evolve into a full lifestyle offering with a focus on innovation and comfort," said ABG CEO Jamie Salter.
A Bit of Background:
- Rockport was founded by a father-son duo in Massachusetts in 1971, pioneering the fusion of athletic shoe technology and casual and dress shoes. The company quickly became an innovator in the industry, blending style, comfort, and performance.
- Over the years, Rockport has redefined itself, focusing on nostalgia by reviving classic styles like the Umbwe hiking boots from the 90s, and expanding into safety footwear like the Rockport Works collection that combines style, protection, and comfort.
- The brand's ownership has shifted hands, from Reebok and Adidas to a joint venture of Berkshire Hathaway and New Balance, and finally to Warson Brands as of the latest data available. Despite the tumult, Rockport continues to be a recognized global retail brand, available in over 60 countries.
What's next for Rockport?
- ABG expects to announce additional partners for Rockport in the coming months, ensuring the brand continues to grow and evolve. With the synergy between ABG and Marc Fisher, Rockport is poised to make big waves in the footwear industry once again. Let's see where these waves take Rockport in the years to come!
- Authentic Brands Group (ABG) aims to extend its brand reach in the footwear industry, following the acquisition of Rockport, a brand that specializes in athletic shoe technology and casual and dress shoes.
- In the AI-driven financial landscape of 2020, ABG has demonstrated its equity and investing prowess by securing the acquisition of Rockport, formerly owned by Warson Brands, and also acquiring Boardriders recently.
- ABG's partnership with Marc Fisher Footwear will allow Rockport to tap into the menu of growing lifestyle offerings, focusing on innovation and comfort, echoing the brand's roots established in 1971 by a father-son duo in Massachusetts.
- After weathering the storm of bankruptcy and the repercussions of the 2020 pandemic, Rockport's future looks promising. With an increase in annual global retail sales to over $29 billion under ABG's leadership, investment in the brand's initial luminary spirit seems well-placed.
- It will be interesting to observe Rockport's strategic alignments with new partners, as ABG further strengthens its footwear portfolio and launches the brand into a broader, trusted market space.
- The travel industry might soon welcome Rockport's stylish, comfortable, and performance-focused footwear, as the brand navigates its way onto international shores and achieves a truly global presence.
