Adidas Failed to Revive Reebok. Now Authentic Brands Will Try

When Adidas AG announced its purchase of Reebok in 2005, it heralded the $3.8 billion deal as a “once-in-a-lifetime opportunity.” With its cult following among fitness fanatics and a strong U.S. presence, Reebok stood to double Adidas’s sales in the crucial North American market, where archrival Nike Inc. held a commanding lead.

But Reebok quickly turned out to be a stone in the German company’s shoe. The aerobics boom from the 1980s had long fizzled and innovations like the Reebok Pump inflatable shoe proved short-lived fads. Adidas embarked on an endless restructuring effort as it tried year after year to halt Reebok’s decline. By the end of 2020, patience in Herzogenaurach—a sleepy town in rural Bavaria where Adidas is based—had waned, and Chief Executive Officer Kasper Rorsted put the company up for sale again.