Apparel retailer V.F. Corp. on Jan. 21 said it plans to divest the occupational part of its workwear business unit.
The segment consists of the nine brands, namely Red Kap, VF Solutions, Bulwark, Workrite, Walls, Terra, Kodiak, Work Authority and Horace Small. Collectively they represented about $865 million of the company's revenue in 2019 and 50% of sales in the work segment.
A spinout would not include the Dickies and Timberland Pro brands.
"Divesting these brands would leave VF with a simplified portfolio of higher-growth, consumer-focused brands, while providing financial flexibility to fuel further strategic initiatives and enhance shareholder value," Chairman, President and CEO Steve Rendle said.
Barclays and Davis Polk are advising VF Corp.
VF Corp. will report its results for the third quarter of fiscal 2020 on Jan. 23.
VF Corp.'s NYSE-listed shares opened flat Jan. 21.