Report: Nike Looking To Sell Surf Brand Hurley

Nike Inc NKE is looking to sell its surfwear brand Hurley International, sources close to the matter told Reuters.

What Happened

Nike is looking to divest its surfwear brand at a time when the hobby doesn't appeal to non-surfing consumers as it has in the past, sources told Reuters. Instead, consumers who used to purchase surfing-related apparel gravitated toward boutique brands, retro streetwear and athleisurewear.

Nike is likely looking to outright sell the brand it bought from founder Bob Hurley in 2002. It's not known how much Nike paid for the asset more than a decade ago nor is it immediately clear how much it can sell the brand for if there is interest.

Why It's Important

The surfwear fashion space has seen its fair share of M&A deals over the years, although not under ideal circumstances. Quicksilver was once the industry leader in the space but was taken over by Oaktree Capital Management in reaction to the company's filing for bankruptcy, Reuters wrote.

As is the case with all unconfirmed reports, it's not clear if talks are at an advanced stage or if such talks exists in the first place. Nike declined to comment on the rumor when asked by Reuters.

The stock traded around $86.76 per share at time of publication.

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