Champion sportswear sold in deal worth up to $1.5B

NEW YORK (CNN) — Champion, the more than century-old sportswear brand, has a new owner.

Hanes has been under pressure from activist investors to cut costs. Known for its underwear brands and basic clothing lines, Hanes is getting back to its roots.

Hanesbrands announced Wednesday that it will sell Champion to Authentic Brands Group in a deal worth up to $1.5 billion with performance incentives. Authentic owns brands such as Reebok, Forever 21 and Quiksilver.

Champion was started in 1919 and has drawn interest from Millennials and Gen Z in recent years, riding a wave of nostalgia for retro sports brands.

But Champion’s sales tumbled 30% in the United States last year. Hanes blamed “challenging activewear apparel market dynamics” for Champion’s slump and excess inventory that hurt its profit.

Many consumers have pulled back on discretionary clothing, a trend that has hurt Champion’s rivals such as Nike and Under Armour. Lululemon, which has higher prices than Champion, has also struggled.

Champion had made an exclusive C-9 Champion line for Target for around 15 years, but the contract expired in early 2020 as Target focused more on its own private-label brands. The company then started selling the C-9 line on Amazon.