4.79%VF Corporation have agreed the sale of the classic workwear brand, Dickies, for $600 million to the brand management company, Bluestar Alliance, in a bid to bring down their net debt level.
Following the sale of Supreme to EssilorLuxottica for $1.5 billion back in July 2024, VF Corporation announced yesterday they were also selling the classic workwear brand, Dickies. In a deal worth $600 million, Dickies will be acquired by Bluestar Alliance, a brand management company who also own the likes of OFF-WHITE & Hurley. With distribution in 55 counties, Dickies is famed for its blue-collar workwear, which also launched its own lifestyle ranges something like the equivalent of the Work in Progress brand to Carhartt. Stocked in the likes of Working Class Heroes, END. Zalando & ASOS, Dickies is a staple heritage streetwear brand offering classic workwear pieces from pleated work pants to duck canvas hoodies.
The $600 million deal is expected to complete by the end of 2025 subject to customary closing conditions and regulatory approvals. As much as Dickies might currently seem like a popping brand in terms of the actual clothing scene, the sale does come as a bit of a surprise. VF’s main reason for the sale is to bring down their net debt level, which basically means lower what they currently owe out. It’s therefore more than likely the case the funds received for the sale of the classic workwear brand will be used to pay this off. The question is if VF didn’t have such high debt levels would they be rushing about to sell a brand like Dickies? Probably not. Also don’t forget to subscribe to KULT & follow @kult_recruit to keep up to date with all the latest industry news.
Dickies is an iconic American workwear brand with a bright future, and I am confident that under Bluestar Alliance’s ownership, it will continue to improve and realize its significant growth potential. As I’ve said before, we continuously evaluate our portfolio and this transaction will enable us to bring our net debt level down and will be accretive to our growth on a pro-forma basis. I want to thank the entire Dickies team for their strong commitment to transforming the brand.
Bracken Darrell – CEO VF Corporation
