The VF Corporation, which owns several jeans brands including Wrangler, Lee and Rock & Republic, plans to create a tax-free spin-off to its shareholders to house its jean and outlet industry.
VF Corporation will retain its other global apparel and footwear brands like Vans, Timberland, The North Face, Terra, Jansport, Altra and Dickies, according to company announcement Monday.
Over the last several year, VF has put an emphasis on its activity-based outdoor, active and work apparel and footwear brands, according to the release. Meanwhile sales of Wrangler and Lee jeans have slowed as consumer preferences change to premium brands or jean alternatives altogether, according to the Wall Street Journal.
»RELATED: Plan to see new products at local ALDI stores: Here’s what we know
“In alignment with our strategic plan, the decision to separate these businesses will allow VF to sharpen its focus as a consumer-centric and retail-minded organization anchored in activity-based lifestyle brands. Our Jeans platform is a successful, sustainable business with iconic global brands and a clear path to value creation as a standalone entity,” said Steve Rendle, chairman, president and CEO of VF.
VF will move its global headquarters to Denver from Greensboro, North Carolina, and the new company that is yet to be named will be headquartered in Greensboro.
FIVE FAST READS
• Walmart adds meal kits that cook in 15 minutes with 1 pan
• Looking for new office space? New downtown Dayton program to help first-timers
• New paint party business opens downtown
• Whole Foods stores begins 30-minute pickup option
• This massive new greenhouse is harvesting its first organic crops, and you could see them in your store soon