Wolverine to shed in-house leather division
The Wolverine World Wide footwear group has announced its intention to sell its in-house leather section, or to licence the operation to a third party as part of a cost-saving measure. The division has been contracting leather production and colouring to suppliers in China, Thailand, the US and Vietnam.
According to Wolverine, the leather division was a ‘low-profit contributor’ and it wanted to create more value for shareholders. Chief executive Brendan Hoffman commented: “In this rapidly evolving retail environment, agility is more important than ever. As such, I firmly believe that portfolio simplification and prioritisation are essential to achieving our goals.”
The change to Wolverine’s business structure includes the reorganisation of its portfolio into three segments. The ‘Active Group’ now consists of the Chaco, Merrell, Saucony and Sweaty Betty brands, the ‘Work Group’ is Bates, Cat, Harley-Davidson, HyTest and Wolverine, and the ‘Lifestyle Group’, comprises the Hush Puppies and Sperry brands.
This article was originally published on page 2 of the December 2022 issue of SATRA Bulletin.