Suspicions about the state of K2 Skis broke out last month when long-time athlete Seth Morrison was dropped from the team. K2's parent company, Newell Brands is planning to cut 10% of its portfolio by the end of 2017, including its Winter Sports divisions- K2 Sports, Marker/Volkl, BCA, Line Skis and Full Tilt.
The consumer goods company runs brands such as Rubbermaid, Sharpie, Elmers, Crockpot, and Coleman and plans to simplify its operating structure after a recent merger with Jarden Corp. The Outdoor Solutions sector of the company had reported earnings of $34.1 million in 2015, making these brands a prime candidate for buyers.
K2 Sports Vice President of Global Marketing, Alex Draper has stated that distribution for 2016 products is nearly finished, and the company will continue as normal with 2017 production.
In an email to Newschoolers last week, Newell Brands spokesperson stated, “The decision to pursue a sale of our winter sports businesses (inclusive of Völkl® and K2®) was part of a recently completed strategic review of Newell Brands’ portfolio. We do not plan to shut these businesses down, but rather intend to sell them to a buyer at a full and fair value. We are confident that we will achieve a successful sale of these category-leading businesses to an owner who shares our interest in unlocking their full potential.
Newell Brands has—and will continue to have—a strong Outdoor & Recreation division. We are fully committed to the continued operations of our leading brands in this category, including Coleman®, Contigo®, Marmot® and others, and will be establishing a major hub in Chicago, IL to help grow these businesses. We look forward to Chicago becoming a major talent hub and an epicenter of innovation for Newell Brands.”
This article will continue to be updated as more information becomes available
Source:
http://www.wsj.com/articles/newell-brands-to-sell-10-of-its-portfolio-1475586462
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