Retail sales in the apparel sector remain sluggish, with its growth expected to remain low, according to McKinsey & Company’s State of Fashion 2025 Report. Now, a global apparel and footwear giant is parting ways with one of its oldest and most recognizable brands, emphasizing the industry’s turbulence.
VF Corporation announced it has agreed to sell its Dickies brand to Bluestar Alliance in a $600 million deal, marking a significant step in its ongoing efforts to stabilize its business.
Founded in 1922, Dickies is VF Corporation’s largest workwear brand. It operates around 15 company-owned stores and sells in 55 countries through third-party partners.
VF Corporation acquired the Texas-born brand in 2017 for $820 million, expecting it to become a growth driver. However, despite its 103-year history, symbolism of blue-collar workers since before WWII, and global presence, Dickies has fallen short of expectations.
Still, VF Corporation is optimistic about this transition and Dickies’ future success under new ownership.
“I am confident that under Bluestar Alliance’s ownership, it will continue to improve and realize its significant growth potential,” said VF Corporation CEO Bracken Darrell in a press release. “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,” he added.
VF Corporation’s ongoing struggles with Dickies
This decision comes as VF Corporation (VFC) is undergoing its “Reinvent” turnaround plan, launched two years ago to cut $300 million in costs, improve margins, and reduce debt.
While the company has been working to bring all its brands back on track, including The North Face, Vans, and Timberland, Dickies’ persistent declines have caused significant setbacks in its progress.
In fiscal 2025, Dickies’ global revenue fell 12%. Meanwhile, The North Face grew by 1%, and Timberland increased by 3%.
During the third quarter of that year, VF Corporation recorded a $51 million impairment charge against Dickies’ trademark value, citing a slower recovery than expected.
By the first quarter of fiscal 2026, CFO Paul Aaaron Vogel revealed the company would stop reporting Dickies as a standalone brand, even as sales declines began to moderate.
Related: 64-year-old retailer closing 291 stores after Chapter 11 bankruptcy
Although VF Corporation didn’t hint at selling Dickies until now, the company has been trimming underperforming work apparel brands from its portfolio for the last seven years.
In 2018, VF Corporation sold the denim brands Wrangler and Lee. This followed the offloading of nine other workwear labels in 2021, including Bulwark, Horace Small, Kodiak, Red Kap, Terra, VF Solutions, Walls, Workrite, and Work Authority.
BlueStar Alliance could be Dickies’ last hope
Founded in 2006, Bluestar Alliance is a global brand management firm specializing in revitalizing and repositioning brands across diverse markets.
The company’s portfolio includes Scotch & Soda, Palm Angels, Off-White, Bebe, and Justice, to name a few. It has a network of over 500 licensees and more than 500 retail stores worldwide.
While Dickies has struggled to find momentum with VF Corporation, Bluestar Alliance’s business model could open new opportunities for the brand. Its introduction to new markets could potentially shift its path after years of underperformance.
The transaction is expected to close by the end of 2025.
Related: Why your favorite retail store is going out of business
