VF had previously announced that it would be divesting its jeans The new company, named Kontoor Brands, Inc., will include the Wrangler®, Lee® and Rock & Republic®brands, and the VF Outlet business. Its a big strategic move by VF where it has siphoned off the low growth denim labels to another company. Last year the sales of jeans for VF fell by 3.5% and current year does not look great either. In contrast , Levi’s has recently been listed on the stock market and received a huge response with the share price jumping over 32% on the listing day mainly on the strength of its profits and strategic growth. The management sounded positive on the filing with the govt. authorities.
“Our teams across VF have made tremendous progress to prepare for the successful separation of Kontoor Brands from VF and this filing is a significant next step in this process,” said Steve Rendle, Chairman, President and CEO of VF Corporation. “We are highly confident that the separation is the best path forward for both organizations to achieve even greater potential and enhance long-term shareholder value.”
The separation is on track to be completed in May of 2019, subject to final approval by VF’s Board of Directors, customary regulatory approvals, and tax and legal considerations.
“This is an exciting next step in our work to establish our jeanswear organization as an independent , public trading company . Kontoor brands – a creative variation of the word ‘ Contour’ is a compelling name that will preserve each brand’s unique identity while also providing the opportunity to evolve the company in the years ahead ” says VF Corp CEO Steve Rendle .
The selection of the name has been an important part of the creation of the new company. The office of Kontoor Brands would be created in the historic Revolution Mill in Greensboro, North Carolina , that has been transformed into a mixed-use campus that includes commercial, residential, restaurant and studio space. VF is currently based in Greensboro, but will be moving its headquarters to Denver along with its diverse portfolio of brands that includes Vans, The North Face and Timberland.
“In choosing a name for the new company, it was important for us to select something that serves as an umbrella for our iconic jeanswear brands and provides us with the opportunity to advance our portfolio in the future. The selected name was inspired by the idea of a perfect fit, which speaks to the rich legacy and storied history of our brands. I’m excited about the opportunities that lie ahead for Kontoor Brands as an independent, publicly traded company,” added Scott Baxter, named CEO of Kontoor Brands.