Levi Strauss is to Sell Khaki Brand - Dockers

Legendary denim brand, Levi Strauss, has announced that it is selling the Dockers label for $311 million.

The deal was reported by CNBC News and the buyer is brand management firm Authentic Brands Group. 

The news comes six months after Levi Strauss announced it was considering selling Dockers, stating that it wanted to focus on its “namesake” products and its athleisure brand, Beyond Yoga.

Under the deal, “Authentic will own Dockers’ intellectual property while Centric Brands will take on operations, handling manufacturing, sourcing and distribution”, says the news channel. Authentic also owns the IP rights for Forever 21, Reebok and Nautica. CNBC suggests that Levi Strauss could make “up to $391 million in future years” thanks to the deal. 

“The Dockers transaction further aligns our portfolio with our strategic priorities, focusing on our direct-to-consumer first approach, growing our international presence and investing in opportunities across women’s and denim lifestyle,” Levi’s CEO Michelle Gass said in a statement. “After a robust process, we are confident that we maximized the value of the business and that Authentic is the right organization to usher in the next chapter of growth for the Dockers brand.” 

Levi Strauss created the Dockers label in 1986. It was hugely popular in the 1990s and 2000s but has since seen a slump in the US. However, the brand has remained popular elsewhere and Authentic Brands Group is hoping to maximise sales by buildings Dockers’ reputation internationally. Authentic has a global network of 1700 licensing partners and so this could see rapid expansion of Dockers’ sales. 

“Few brands own a category the way Dockers does, yet still have so much room to grow,” said Matt Maddox, president at Authentic. “Its legacy in casualwear gives it a strong foundation, but the real opportunity lies in reimagining the brand for a new generation. Through our global platform and deep licensing network, we’re committed to stewarding the brand into its next era of growth and relevance.”