Skechers secures FTC approval for takeover, faces lawsuit from investor

Footwear brand Skechers has received antitrust clearance from the US’ Federal Trade Commission (FTC) for its privatisation deal with 3G Capital. The global investment firm announced its proposed 9.4 billion dollar takeover of Skechers in early May, at which time it had already secured approval for the transaction by the brand’s board of directors.

While the transaction is now anticipated to close in the third quarter of the year, it could face delays in the form of a lawsuit from a disgruntled investor. Following the announcement of the takeover proposal, the Key West Police Officers & Firefighters Retirement Plan filed the suit in Los Angeles’ federal district court in which it claimed that the deal raises “red flags”.

The trustee firm alleged in the complaint that Skechers founder, Robert Greenberg, and his family, who hold around 60 percent of the brand’s voting power, “controlled the sales process to a single bidder and deprived the minority stockholders of any legitimate bidding process”. Calling for a preliminary injunction, Key West has requested for the deal to be delayed until it can evaluate the transaction and Skechers files the required documents with the SEC.

The takeover values Skechers at 63 dollars a share, and gives existing shareholders the option of taking 57 dollars a share in cash and one unlisted non-transferable equity unit in a newly-formed entity, which will become the parent of the brand. Key West, however, said it did not want to be pushed to make an election for the options provided by the deadline.

Financial trouble had been brewing for Skechers in recent months. On the back of a 2 percent drop in net earnings in the first quarter of fiscal 2025, Skechers said it was looking to adapt the business through exploring cost-sharing with vendors, adjusting prices and optimising sourcing. The company reported revenues of 9 billion dollars in 2024, despite noting global economic uncertainties and trade tensions.

FashionUnited has contacted Skechers with a request to comment on the lawsuit.