VF Corp. Spins Off Denim Brands

Following last week’s announcement that VF Corp. (Greensboro, N.C.) will forego its denim business, the company has said that it will spin off its jean brands Lee and Wrangler into a separate entity specializing in yoga pants and other jean alternatives.

The new company housing the brands will focus on VF Corp.’s growing athletic-lifestyle brands, according to USA Today. The retailer’s strategy is to expand its geographic footprint to Asia, specifically China. The company has not yet been named, but it will be led by Scott Baxter, who was in charge of the denim brands.

The spinoff company is expected to be complete within the first half of next year and is anticipated to generate $2.5 billion in annual sales. VF Corp. said it would be moving its headquarters from Greensboro, N.C., to Denver, but that the new company will remain in North Carolina.