Adidas Failed to Revive Reebok. Now Authentic Brands Will Try

When Adidas AG announced its purchase of Reebok in 2005, it heralded the $3.8 billion deal as a “once-in-a-lifetime opportunity.” With its cult following among fitness fanatics and a strong U.S. presence, Reebok stood to double Adidas’s sales in the crucial North American market, where archrival Nike Inc. held a commanding lead.

But Reebok quickly turned out to be a stone in the German company’s shoe. The aerobics boom from the 1980s had long fizzled and innovations like the Reebok Pump inflatable shoe proved short-lived fads. Adidas embarked on an endless restructuring effort as it tried year after year to ...