VF Corp, parent company to Vans, The North Face and Reef, is making some big changes to its internal structure. This week the powerhouse announced it will split into two separate publicly traded companies.
Apparel and footwear brands will remain under the VF Corp umbrella, while the jeans and outlet side of business is yet to be named, but is being referred to as NewCo. NewCo will be created through a tax-free spin-off from shareholders and the transaction is expected to be completed in the first half of 2019.
VF Corp also plans to station their headquarters for NewCo in Greensboro, North Carolina, and VF Corp will relocate to Denver, Colorado.
According to The Denver Post, VF Corp has $27 million in job growth incentive tax credits and $13 million are transferable – meaning they can be sold to other companies, which will benefit Denver’s economy.
Following yesterday’s announcement, VF Corp shares fell 3.6 percent. However, they still held a market share of $36.8 billion at the close of trading on Monday. VF Corp CEO, Steve Randle remains confident in the company’s initiative to “better position the company for long-term success.”
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