Nike, one of the world’s largest athletic footwear and apparel companies, made headlines in 2012 when it announced the sale of one of its subsidiary brands, Cole Haan. The sale raised questions among industry experts and consumers alike, with many wondering why Nike would part ways with such a well-known and respected brand.
Cole Haan, founded in 1928, has a long history of producing high-quality footwear and accessories. The brand’s reputation for style and craftsmanship made it a favorite among fashion-conscious consumers, and its inclusion in the Nike portfolio added a touch of sophistication to the athletic giant’s offerings. So, why did Nike decide to sell Cole Haan, and what does this mean for the future of both companies? Let’s take a closer look.
Yes, Nike sold Cole Haan to private equity firm Apax Partners in 2013 for $570 million. Nike decided to focus on its core athletic brands and divest its non-essential businesses, including Cole Haan and Umbro. Cole Haan has since grown as a luxury fashion brand specializing in men’s and women’s footwear, handbags, and accessories.
Did Nike Sell Cole Haan?
Nike, the world-renowned sports brand, is known for its innovative products, from shoes to apparel. However, Nike’s portfolio of brands is vast, and it has made some strategic decisions to focus on its core business. One such decision was to sell Cole Haan, a brand that it had acquired in 1988. The sale of Cole Haan was a significant move for Nike, and it had its reasons for doing so. In this article, we will explore the reasons behind Nike’s decision to sell Cole Haan.
The Background of Cole Haan
Cole Haan, a luxury brand specializing in footwear and accessories, was founded in 1928. In 1988, Nike bought Cole Haan for $80 million, hoping to expand its portfolio of brands. Nike’s plan was to incorporate Cole Haan’s expertise in footwear with its sports technology to develop a range of high-end sneakers.
Over the years, Cole Haan expanded its product line to include clothing and accessories, and it became a formidable brand in the luxury market. However, Nike’s focus began to shift back to its core business of sports gear, and it started to explore the possibility of selling Cole Haan.
The Sale of Cole Haan
In 2012, Nike announced the sale of Cole Haan to Apax Partners, a private equity firm, for $570 million. The sale was a strategic decision for Nike, as it wanted to concentrate on its sports brands, such as Nike, Jordan, and Converse. Nike realized that Cole Haan was not aligned with its sports-focused strategy, and it was not contributing significantly to its bottom line.
The sale of Cole Haan was a win-win situation for both Nike and Apax Partners. Nike was able to divest a non-core asset and focus on its core business, while Apax Partners acquired a valuable brand with a loyal customer base.
The Benefits of Selling Cole Haan
The sale of Cole Haan allowed Nike to streamline its business and focus on its core strengths. Nike’s primary focus is on sports, and it wanted to concentrate on its sports brands. The sale of Cole Haan freed up resources and allowed Nike to invest in its core business, such as innovation and product development.
Moreover, Nike was able to generate a significant profit from the sale of Cole Haan. Nike had bought Cole Haan for $80 million in 1988 and sold it for $570 million in 2012, which is a massive profit. The sale of Cole Haan was a strategic business decision that was beneficial for Nike.
The Comparison between Nike and Cole Haan
Nike and Cole Haan are two different brands with distinct target markets. Nike’s focus is on sports gear, while Cole Haan is a luxury brand that caters to a different customer base. Nike’s products are designed for athletes and sports enthusiasts, while Cole Haan’s products are for the fashion-conscious consumer.
The sale of Cole Haan allowed Nike to focus on its core business and differentiate itself from other luxury brands. Nike’s brand identity is synonymous with sports, and it wanted to stay true to that identity. By selling Cole Haan, Nike was able to differentiate itself from other luxury brands and focus on its core strengths.
The Future of Nike
The sale of Cole Haan was a strategic decision that allowed Nike to focus on its core business. Nike is a brand that is synonymous with innovation and sports technology, and it wants to continue to be a leader in the sports industry. Nike’s future is bright, and it has many exciting products in the pipeline.
Nike’s focus is on innovation, and it wants to continue to develop products that are innovative and technologically advanced. Nike wants to stay ahead of the competition and be a leader in the sports industry. The sale of Cole Haan allowed Nike to invest in its core business, and it has many exciting products in development.
The Verdict
In conclusion, Nike’s decision to sell Cole Haan was a strategic business decision that allowed it to focus on its core business. Nike is a brand that is synonymous with sports, and it wanted to stay true to that identity. The sale of Cole Haan allowed Nike to differentiate itself from other luxury brands and concentrate on its core strengths.
Nike’s future is bright, and it has many exciting products in development. Nike is a brand that is committed to innovation and staying ahead of the competition. The sale of Cole Haan was a win-win situation for both Nike and Apax Partners, and it allowed Nike to generate a significant profit from a non-core asset.
Frequently Asked Questions
Find below some frequently asked questions and answers about whether Nike sold Cole Haan or not.
Question 1: Did Nike sell Cole Haan?
Yes, Nike sold Cole Haan to a private equity firm named Apax Partners in November 2012 for $570 million. This decision was made by Nike to concentrate more on its core business of designing and selling athletic shoes and apparels. Cole Haan was not a part of Nike’s core business and was not performing as per Nike’s expectations.
After the sale, Cole Haan became an independent company and started operating under the name “Cole Haan LLC.” In the years following the sale, the company has grown significantly and expanded its product line beyond just shoes to include handbags, outerwear, and other accessories.
Question 2: Why did Nike sell Cole Haan?
Nike sold Cole Haan because it wanted to focus on its core business of designing and selling athletic shoes and apparels. Cole Haan was not a part of Nike’s core business and was not performing as per Nike’s expectations. By selling Cole Haan, Nike was able to concentrate more on its core business and invest more resources in research and development.
Moreover, selling Cole Haan helped Nike to generate cash, which it could use to invest in its other brands such as Jordan and Converse. Nike also wanted to reduce its exposure to the fashion and lifestyle market, which is highly competitive and constantly changing.
Question 3: Why did Apax Partners buy Cole Haan?
Apax Partners bought Cole Haan because it saw a lot of potential in the brand. Cole Haan was a well-known and respected brand in the fashion and lifestyle market, and Apax Partners believed that it could grow the brand further and make it more profitable. Moreover, Apax Partners saw an opportunity to expand Cole Haan’s product line beyond just shoes to include handbags, outerwear, and other accessories.
Apax Partners also believed that Cole Haan could benefit from its expertise in retail and consumer goods. Apax Partners has a strong track record of investing in and growing retail and consumer goods companies, and it believed that it could do the same with Cole Haan.
Question 4: How has Cole Haan performed since the sale?
Cole Haan has performed well since the sale to Apax Partners. The company has grown significantly and expanded its product line beyond just shoes to include handbags, outerwear, and other accessories. Cole Haan has also expanded its retail footprint by opening new stores and increasing its presence in department stores and other retail channels.
Moreover, Cole Haan has continued to innovate and introduce new products that appeal to its customers. For example, it has introduced a line of shoes that are designed to be more comfortable and supportive, which has been well-received by customers.
Question 5: Is Nike still involved with Cole Haan in any way?
No, Nike is no longer involved with Cole Haan in any way. After the sale to Apax Partners in November 2012, Cole Haan became an independent company and started operating under the name “Cole Haan LLC.” Nike no longer holds any ownership stake in the company and has no involvement in its operations or management.
However, it is worth noting that Nike and Cole Haan had a long and successful partnership before the sale. Nike acquired Cole Haan in 1988 and helped to grow the brand into a well-known and respected fashion and lifestyle brand. The sale to Apax Partners was a strategic decision by Nike to focus more on its core business of designing and selling athletic shoes and apparels.
In conclusion, it is clear that Nike did indeed sell Cole Haan. While the decision may have come as a surprise to some, it was a strategic move for Nike to focus on their core athletic brand. The sale of Cole Haan allowed Nike to reinvest in their primary business and continue to innovate in the athletic industry.
Although it may be disappointing for fans of Cole Haan’s trendy and stylish footwear, the sale presents an opportunity for the brand to grow and flourish under new ownership. With a dedicated customer base and a strong reputation for quality products, it is likely that Cole Haan will continue to thrive in the fashion industry.
Overall, the sale of Cole Haan marks a significant chapter in Nike’s history and reinforces their commitment to their core business. As consumers, we can expect to see continued innovation and excellence from Nike in their athletic products, while also keeping an eye on the exciting developments of Cole Haan under new ownership.
