Nike bought Umbro four years ago, but they have just announced they will sell the company to Iconix Brand Group in a $220M (£137M) deal, and there is news that Mike Ashley’s company Sports Direct may get involved with licensing the Umbro products.
Mike Ashley – may get involved with Umbro licensing
It seems that Nike are unloading the least profitable parts of their business, and sadly Umbro has been on the decline for many years now.
Umbro was the kit supplier to England for a long time, but from next year it will be American brand Nike who will supply England with their kit.
Nike said it would be selling Umbro almost six months ago, but it announced yesterday that Iconix would be the buyer.
Iconix Brand Group owns a diversified portfolio of fashion and home brands in every segment of retail distribution, and it licenses its brands to leading retailers and manufacturers worldwide .
And this is where Mike Ashley and Sports Direct come in – and there’s a possibility Iconix may license Umbro to Mike Ashley’s company – but how real this is we don’t know – but that’s what’s being reported.
Mike wouldn’t own Umbro, but Sports Direct would pay a license fee to Iconix, to sell kit that has the Umbro logo on it.
But from a business perspective Umbro has been on a downward path for many years, and it could be difficult to restore the brand to the prominence it once had.
Obviously Iconix are banking on that not being true.
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