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The younger generations have put chunky "dad shoes" and Bermuda shorts back in style, making some regret throwing away their now-fashionable collection.
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Although people may have previously made fun of chunky dad shoes, an iconic footwear brand grew into a multi-billion-dollar business despite the jokes, making it one of the most lucrative shoe companies worldwide.
Related: Struggling sportswear retailer makes harsh cuts to stay afloat
In 1992, a men's street shoe brand was founded in Manhattan Beach, California. It quickly became a beloved brand among many sneaker-wearing fans, which led it to go public only seven years later.
This once-unknown shoe brand is now the third-largest footwear company in the world, with around 5,300 stores nationwide, a vast assortment of footwear categories, and $9 billion in yearly sales.
The ongoing trade war leads a popular shoe company to pull its annual forecast
Skechers completely scrapped its annual earnings forecast in April, claiming the looming tariffs and trade policies have challenged the company. These policies have created even more uncertainty in an already shaky global economy, threatening a further slowdown in consumer spending.
The footwear company manufactures all the shoes it sells to its U.S. market abroad, with 40% coming from China. This would force Skechers to face an up to 145% tariff on all Chinese goods.
Related: Popular formerly bankrupt retail chain makes brick-and-mortar comeback
However, a sudden revelation came at the perfect time for Skechers, as the trade war continues to heat up with China's high tariffs, and the 90-day pause for the rest of the countries is nearing its end, which could financially harm the brand's future.
Skechers seals a multi-billion-dollar deal to go private
Skechers (SKX) has sealed a $9.4 billion acquisition agreement with the investment firm 3G Capital to go private, as announced on May 5.
The revelation caused Skechers' stock to rise around 25% at market open on Monday, the day the announcement was made.
3G Capital will offer existing stockholders $63 per share, representing a 30% premium to Skechers’ 15-day volume-weighted average stock price before the announcement's unveiling.
Although this offering currently represents a nearly 2% premium now that the stock has risen, 3G Capital has agreed to provide an alternative mixed consideration option for the shareholders to instead receive $57 in cash and one unlisted, non-transferable equity unit in a newly-formed, privately held company that will become Skechers' parent company once the transaction is finalized.