Adidas Settles for $8 Million in Rockport Dispute
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German-headquartered Adidas AG has agreed to a settlement in its Rockport bankruptcy dispute.
Adidas bought Rockport as part of its takeover of Reebok in 2005 and sold the brand a decade later.
Rockport was placed in Chapter 11 bankruptcy protection in May of this year, and in July a rescue plan was lodged by CB Marathon, an affiliate of Charlesbank Capital Partners, to take over the ailing business.
However Adidas and Reebok challenged that, lodging a claim for more than $70 million to recover unsecured claims from Rockport.
According to a news, Adidas agreed to a payout of $8 million from its $54 claim, a settlement approved by a Delaware bankruptcy judge on Monday, clearing the way for the same to CB Marathon, subject to final approval from the courts.
Questions & Answers
Q.What was the original amount Adidas was seeking to recover from Rockport?
What was the original amount Adidas was seeking to recover from Rockport?
Adidas initially lodged a claim for more than $70 million to recover unsecured claims from Rockport. This was challenged by Adidas and Reebok after Rockport entered Chapter 11 bankruptcy.
Q.When did Adidas originally acquire the Rockport brand?
When did Adidas originally acquire the Rockport brand?
Adidas acquired Rockport in 2005 as part of its larger takeover of Reebok. They then sold the brand approximately ten years later.
Q.What is the status of CB Marathon's plan to take over Rockport?
What is the status of CB Marathon's plan to take over Rockport?
CB Marathon's rescue plan to take over Rockport can now proceed following the settlement. It still requires final approval from the courts.
Q.What was the final settlement amount Adidas agreed to receive?
What was the final settlement amount Adidas agreed to receive?
Adidas agreed to a payout of $8 million. This settlement was approved by a Delaware bankruptcy judge on Monday.
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