Familiar apparel brand buyer negotiating to buy Lee jeans
A fast-track effort by Kontoor Brands Inc. to sell off its Lee jeanswear business may have a familiar buyer in mind to the Triad.
According to a report Monday in WWD.com, Kontoor has been conducting negotiations with Authentic Brands Group during an exclusive period set to end soon.
When asked to comment on the WWD.com report, Kontoor said Tuesday that "we aren't going to comment on market speculation."
Kontoor pointed to its May 7 announcement, as part of its first-quarter earnings report, that it is in an "advanced state with interest from multiple parties" to sell Lee.
"The company anticipates entering into a definitive agreement to divest the Lee business in 2026," according to a news release.
"We're getting close to the final stages of the process, but not there yet," Scott Baxter, Kontoor's chairman, chief executive and president, told analysts during a May 7 conference call.
Sources told WWD.com that Kontoor could get $600 million for the Lee business.
The WWD.com report said a potential Authentic goal with Lee would be to expand the brand's presence with Costco and Sam's Club, as well as mass market channels.
Authentic expanded its apparel portfolio in October 2024 when it purchased the iconic global Champion operations from HanesBrands Inc. for just more than $1 billion after HanesBrands heeded investor pressure to divest of the brand.
WWD.com was the first media outlet to report on the potential Champion sale to Authentic.
The Champion brand purchase is the second-largest brand acquisition in Authentic's history.
Authentic already has a significant presence in both the Triad and the apparel industry through its eclectic portfolio of more than 50 celebrity-driven, trendy and traditional consumer brands.
Familiar brands with Triad roots include Nautica - which was bought from VF Corp. in May 2018 - Thomasville Furniture and Van Heusen.
Other well-known brands include Sports Illustrated, Brooks Brothers, Aeropostale, Eddie Bauer, Izod, Forever 21 and Arrow. They also own the rights or estates of several celebrities, including Marilyn Monroe, Elvis Presley, Muhammad Ali, Julius Erving, David Beckham.
Authentic prefers to outsource manufacturing and most operational production.
Baxter told analysts that the decision to sell off Lee was about Kontoor "reaching our full potential as a company" following its $900 million purchase of Helly Hanson that closed a year ago. Helly Hansen focuses on mid- to high-end outdoor and skiing apparel.
Baxter said Kontoor was not pushed or forced to sell Lee by an investor seeking a short-term profit boost.
"When it comes to selling a business, it just makes a heck of a lot more sense to sell it when it's doing well versus selling when it's doing poorly." Baxter said.
"Lee is in a good place operationally. With Helly Hansen and Wrangler growing very nicely, that's why we felt it was the right time to do this."
Baxter said Kontoor was not surprised when multiple potential buyers emerged. "We've been good stewards of the brand," he said.
Baxter said another component of the timing to sell Lee was "we're selling on our front foot, which is the most important thing when you're selling an asset."
"We believe this will be a great outcome for Kontoor and Lee, giving Lee a chance to be important to someone else in their portfolio."
Baxter also stressed that purchasing Helly Hansen did not compel the sale of Lee.
"The acquisition of Helly Hanson really helped us shift into growth mode, which was really, really important for our company, important for our investors," Baxter said. "We believe that we have the team and the assets in place to be a real high-level growth company."
Baxter said that when comparing Wrangler and Lee's recent sales, the decision was made to "put a full concerted effort in all of our energy and investment from a denim side into Wrangler."
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This story was originally published May 13, 2026 at 1:07 PM.