VF Corp to Create Spin-off Company for Iconic Jeans Brands

by | Aug 15, 2018 | NEWS

VF Corporation (NYSE: VFC) announced Monday their intention to create two, independent publicly-traded companies.

VF Corporation holds numerous iconic brands including, Vans, Wrangler, Lee, Timberland, and The North Face. Established in 1899, VF is one of the largest apparel, footwear, and accessories companies in the world.

VF Corporation will continue to hold all brands except for their jeans and outlet brands. The yet-to-be-named company – referred to as NewCo throughout the company’s press release – will hold all the company’s jeans brands and the VF Outlet businesses and will be created via a tax-free spin-off.

Steve Rendle, Chairman, President and CEO of VF, stated in the press release, “the decision to separate these businesses will allow VF to sharpen its focus as a consumer-centric and retail-minded organization anchored in activity-based lifestyle brands…This exciting step forward will mean that both VF and NewCo have the resources, management focus and financial flexibility to thrive in a dynamic consumer marketplace, creating an even brighter future for both organizations and all of their stakeholders.”

The company also announced the anticipated appointment of Scott Baxter as CEO and Rustin Welton as CFO of NewCo – pending completion of the transaction. Baxter currently serves as Group President for the Western Americas and was previously Group President, Outdoor & Action Sports, Americas. Before that, he served as Vice President, VF Corporation & Group President, Jeanswear, Imagewear and South America.

NewCo global headquarters will be in Greensboro, N.C. – both the Lee and Wrangler brands will be headquartered there.

The separation is expected to be completed in the first half of 2019 and is subject to final approval by the company’s Board of directors, as well as customary regulatory approvals.