[an error occurred while processing this directive]
BBC News
watch One-Minute World News
LANGUAGES
Spanish
Brasil
Caribbean
Last Updated: Thursday, 10 July, 2003, 05:34 GMT 06:34 UK
Nike expands trainer empire
Converse All Star
Retro styling is set to return
The sportswear maker Nike has agreed to buy the trainer maker Converse.

The acquisition would give Nike access to Converse's retro style brands, such as its Chuck Taylor All Star trainers.

This, combined with Nike's marketing machine, should help push both brands further, analysts predicted.

"Retro styling has come back so strong, a lot stronger than I would have expected," said Robert Toomey, an analyst for RBC Dain Rauscher.

"Converse is one of the strongest footwear brands in the world with great heritage and a long history of success," said Tom Clarke, Nike's president of new business ventures.

Revival

But that was not always so.

In 2001, Converse, which had invented the basketball shoe in the 1920s, filed for bankruptcy before being taken over by private investors who have since tried to rebuild the brand.

At the time, the brand was struggling, having long since been pushed out of the top league by Nike and others.

Its rubber-toed basketball shoes have enjoyed periods of popularity as a fashion icon, however.

And in recent years, Converse has been making modern basketball shoes which have been well received by players.

Scrutiny

Nike has agreed to pay $305m (187m) for Converse.

In addition, Nike will take on some of Converse's liabilities.

The deal is subject to regulatory approval.

Nike is huge when compared with Converse.

Last year, Nike's sales reached $10.7bn while Converse's sales stood at 205m.


SEE ALSO:
Nike 'free speech' appeal rejected
26 Jun 03  |  Americas
Nike 'free speech' challenged
23 Apr 03  |  Americas
Overseas sales lift Nike
19 Dec 02  |  Business
Bitter row over trademark spoof
23 Oct 02  |  England
Spotlight on Indonesian 'sweat shops'
07 Mar 02  |  Asia-Pacific
Oxfam condemns sportswear giants
07 Mar 02  |  Asia-Pacific


RELATED INTERNET LINKS:
The BBC is not responsible for the content of external internet sites


PRODUCTS AND SERVICES

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East | South Asia
UK | Business | Entertainment | Science/Nature | Technology | Health
Have Your Say | In Pictures | Week at a Glance | Country Profiles | In Depth | Programmes
Americas Africa Europe Middle East South Asia Asia Pacific