Nike is kicking its Cole Haan and Umbro brands to the curb.
The world’s largest athletic shoe maker is selling the two subsidiaries to cut costs and focus on its core and several other brands, according to an Associated Press report.
Nike bought Cole Haan, which sells pricey shoes, luggage and other leather goods, in 1988 for about $95 million. It purchased its Umbro soccer clothier in 2008 for $582 million to help it compete in Europe with Adidas, the world’s largest soccer company.
While no potential buyer was identified for either Cole Haan or Umbro, Nike hopes to have them off its books sometime next year. According to Bloomberg, Cole Haan and Umbro together accounted for 3.6 percent of Nike’s $20.9 billion revenue in 2011.
In addition to its flagship Nike brand, the company said the divestment will allow it to focus more attention to its Jordan, Converse and Hurley subsidiaries.
Nike said it’s decision was not in response to an announcement