VF Corp. announced it is separating VF Jeanswear from its parent company and making it a part of a new company called Kontoor Brands, Inc.
It will be an independent, publicly traded entity following distribution of its common stock on May 22.
The new company’s brands will include the VF Outlet business in addition to Wrangler, Lee and the Los Angeles–founded Rock & Republic.
After the market closes on May 22, VF Corp., based in Greensboro, N.C., will distribute 100 percent of Kontoor Brands’ shares to holders of VF common stock, according to a press release from the company. For every seven shares of VF common stock shareholders have by the close of business on May 10, they will receive one share of Kontoor Brands common stock. Fractional shares of Kontoor Brands common stock will not be distributed.
Such fractional shares of Kontoor Brands’ common stock that are otherwise issuable to a VF shareholder will be sold in the open market. This sale will be conducted on behalf of the shareholder, who will receive a cash payment for the fractional share based on the pro-rata portion of net cash proceeds from all fractional-share sales.
In 2002, Michael Ball launched the Rock & Republic brand as a premium-denim label during the high-end jeans craze of the early 2000s. In 2010, Rock & Republic filed for bankruptcy following the company’s inability to repay its debts.
That same year, VF Corp. bought the brand name, which resulted in a licensing deal with the department-store chain Kohl’s. The retailer remains a seller of Rock & Republic apparel.
Published On : 02-05-2019
Source : Apparel News
