Adidas’ new flagship store in New York City will close in early 2021, the company announced on Monday, after an all-cash sale of nearly 80% of the company’s business for $1 billion.
The retailer, which has been a key part of the city’s revitalization over the past decade, said in a statement that it will end its $1 million sale of its iconic store at 870 Madison Avenue by the end of 2021.
“The sale of the flagship store will end with the completion of the renovation of the building, which will result in the closing of the current sale,” the company said.
“The sale will also be followed by the sale of other assets.”
The deal was announced by Adidas President and CEO Kevin Plank at a news conference on Monday.
It follows the sale earlier this month of its flagship store at 666 Fifth Avenue, where the company also announced plans to close its flagship stores by the summer.
“Our flagship store is a central part of our global brand and we will remain a leader in the footwear and apparel industry for years to come,” Plank said.
The deal also comes as Adidas faces pressure to continue expanding its sales in China, where a surge in shoe sales there has helped drive its market share to more than 10% this year.
The company announced plans last month to add 500,000 more stores across China over the next five years, a move that would mark a further escalation of efforts to expand its footprint in the market.
The sale was first reported by the Wall Street Journal, which said the sale was worth $750 million.
The store was slated to close in 2021.