Wolverine World Wide's Bold Gambit: Divests Hush Puppies IP In China, Hong Kong, And Macau

Wolverine World Wide, Inc. WWW inked a pact with its current sublicensee, Beijing Jiaman Dress Co., Ltd, to sell Hush Puppies intellectual property in China, Hong Kong, and Macau for $58.8 million.

Wolverine will continue to own and operate the Hush Puppies brand throughout the rest of the world. 

"We continue to streamline our organization and become more efficient, so that we can direct greater resources into our growth brands, pay down debt, and enhance long-term shareholder value," said Mike Stornant, Executive Vice President and Chief Financial Officer of Wolverine Worldwide.

The transaction is expected to close in the coming weeks.

Also Read: Wolverine Worldwide Temporarily Amends Certain Financial Covenants To Improve Liquidity & Financial Flexibility

At the end of the recently reported Q2, the company's net debt was $930 million, and liquidity was approximately $370 million.

The latest deal is a part of the company's brand portfolio transformation, including selling the U.S. Wolverine Leathers business. 

The company also completed the sale of its U.S. Wolverine Leathers business to its long-time customer, New Balance, for approximately $6 million in total proceeds. 

The transactions follow the company's recently completed sale of Keds and the previously announced strategic alternatives process for the Sperry brand.

Price Action: WWW shares traded higher by 4.08% to $8.41 on the last check Friday.