Exclusive: Nike Explores Sale of Hurley Surfwear Brand – Sources

(Reuters) – Nike Inc. (NKE.N), the world's largest sportswear manufacturer, is exploring different options for its Hurley International surfwear brand, including its possible divestment, according to people familiar with the subject.

The potential withdrawal of Nike from the surfwear market is emblematic of the position of most major consumer companies vis-à-vis the sector. Surf brands have lost their appeal to non-surfing consumers, who now prefer boutique brands and retro streetwear.

Among the options considered by Nike for Hurley, we can mention the outright sale of the Californian brand Costa Mesa, said the sources, asking for anonymity because the deliberations are confidential.

It's unclear exactly how much Nike could get by selling Hurley. Nike declined to comment.

Nike bought Hurley from its founder Bob Hurley in 2002 for an undisclosed amount to expand beyond sportswear and other sportswear for surfing, skating and snowboarding.

Bob Hurley founded the company in 1979 and became famous in the 1970s for fashioning the surfboard of World Champion Wayne "Rabbit" Bartholomew.

In recent years, the growing appetite for clothing badociated with the lifestyle and culture of the beach has diminished, to the point that former world leader Quiksilver went bankrupt in 2015 before being taken over by the company private equity firm Oaktree Capital Management (OAK.N).

Consumer fashion has dropped from surfwear to the benefit of athletics, while emerging fashion is turning to urban streetwear brands like Carlyle, backed by Supreme, and backtracking resembles restored sportswear brand Fila and Champion.

Last year, Boardriders Inc., the company behind Quiksilver, Roxy and DC Shoes, owned by Oaktree, acquired its troubled Australian rival Billabong, owner of his eponymous brand, alongside other brands lifestyle such as Element and VonZipper.