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Nike buying Converse for $305 millionBy Justin Pope, The Associated Press
BOSTON Chuck Taylor basketball shoes are getting a Nike swoosh. Nike Inc. announced Wednesday it had agreed to buy Converse Inc.,[url=http://peutereyparkaonlineshopwomen.olimx.com/][b]peuterey parka online[/b][/url], which dominated the basketball shoe market from the 1920s to the 1970s and is best known for its famed "Chuck Taylor All Star" sneakers.
By the 1980s,[url=http://monclerwesteoutletbillig.albirank.net/][b]billig Moncler Jacken Damen Weste Moncler Jacken Outlet Österreich[/b][/url], Beaverton,[url=http://monclerwesteherrendaunenjackebillig.albirank.net/][b]Moncler Jacken Online[/b][/url], Ore.-based Nike had overtaken Converse's rubber-toed product as the dominant basketball shoe. Later that year, the North Andover-based company was bought by private investors who have tried to revive the brand.
Last year, Nike had $10.7 billion in revenue, while Converse reported $205 million.
Robert Toomey, a regional analyst for RBC Dain Rauscher in Seattle, said Nike was probably looking to cash in on the popularity of "retro" shoes and Converse's close brand association with basketball, particularly for Americans who grew up in the 1950s and '60s.
Earlier this month,[url=http://woolricharcticparkauomooutlet.olimx.com/][b]Woolrich Parka[/b][/url], New Balance relaunched its PF Flyers canvas sneakers, jumping on the retro bandwagon.
"Retro styling has come back so strong, a lot stronger than I would have expected," Toomey said.
When asked if Nike would pay cash, Nike spokeswoman Joani Komlos said the payment process would not be revealed until after the deal is closed.
"Converse is one of the strongest footwear brands in the world with great heritage and a long history of success," said Tom Clarke,[url=http://peutereyparkaonlineshopwomen.olimx.com/][b]peuterey online shop[/b][/url], Nike's president of new business ventures.
Converse invented basketball shoes in the early days of the game,[url=http://woolrichswedense.gengfl.com/][b]woolrich online shop sweden[/b][/url], and "Chucks" got their name from Chuck Taylor, a Converse salesman who traveled the country from the 1920s until the 1960s, evangelizing the game and selling shoes.
But by the 1970s it was crippled by internal problems including the disastrous acquisition of apparel-maker ApexOne.
There was also bad luck. While Nike signed Michael Jordan,[url=http://woolrichswedense.gengfl.com/][b]woolrich online shop sweden göteborg[/b][/url], who became the NBA's greatest star,[url=http://monclerwesteoutletbillig.albirank.net/][b]http://monclerwesteoutletbillig.albirank.net/[/b][/url], Converse signed Latrell Sprewell, who once tried to choke his coach during a practice and was dropped as an endorser.
During the 1980s, Chuck Taylor shoes,[url=http://woolricharcticparkasweden.albirank.net/][b]woolrich online shop sweden göteborg[/b][/url], which the company still sells, enjoyed a renaissance. But this time the customers were grunge rockers and baby boomers, not basketball players. Its "Grandma-ma" ads with basketball player Larry Johnson were a hit, but the sneakers continued to struggle.
Apparel-industry veterans Marsden Cason and William Simon bought the company out of bankruptcy and tried to rebuild Converse's reputation as a maker of top-of-the-line basketball shoes,[url=http://merrellshoesonsaleformen.blogspot.com/][b]merrell shoes on sale[/b][/url].
Converse did expand its brands with the Jack Purcell and One Star brands,[url=http://duveticaitalia.webmium.com/][b]Duvetica italia[/b][/url], and the company has made some progress. The year before bankruptcy,[url=http://giuseppezanottioutletonline.webmium.com/][b]http://giuseppezanottioutletonline.webmium.com/[/b][/url], sales were $145 million.
The deal, which remains subject to regulatory approval, would give Converse the deep-pocketed backing and marketing depth to push its brand worldwide, while offering Nike a fashion niche it may have been missing.
Toomey said the deal was the latest "selective acquisition" for Nike,[url=http://rogervivierweddingshoes.olimx.com/][b]cheap 2013 roger vivier wedding shoes for sale[/b][/url], which has expanded its portfolio to include Cole Haan, Bauer and Hurley International,[url=http://woolrichoutletfr.halod.com/][b]Doudoune Woolrich Parka Femme[/b][/url], a teen line.
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