Negotiations aimed at finalizing HanesBrands’ (asi/59528) sale of its Champion brand to Authentic Brands Group are taking longer than expected and may not conclude until late summer.

Multiple media outlets, including Axios Pro, reported that details of the deal are still being worked out and could take until August or even September to finish. When it initially emerged that Authentic Brands was the frontrunner to buy athletic-apparel line Champion, sources indicated a finalized deal was expected by the end of May. Champion and other HanesBrands apparel sells in the promotional products industry.

HanesBrands is currently in exclusivity with Authentic Brands on the sale. During that period, which typically lasts a couple of months, HanesBrands can’t entertain offers for Champion from any entity but Authentic.

Other Champion suitors reportedly have included G-III Apparel Group and WHP Global, but Authentic Brands bested them in the competition to snap up Champion – at least for the time being. Should talks with Authentic Brands break down and exclusivity end, HanesBrands could enter discussions with other businesses on a possible Champion sale.

According to sources cited in media reports, price is one sticking point in the current negotiations between HanesBrands and Authentic Brands Group. HanesBrands reportedly wants about $1.4 billion for Champion, while Authentic Brands doesn’t want to pay more than $1 billion.

Axios reported that Champion has costly manufacturing operations that will prove expensive to shut down – one reason for the tricky negotiations on sale price. HanesBrands reportedly wants a deal that will allow a streamlined shuttering of the manufacturing assets.

If Authentic Brands does seal the deal for Champion, it could shutter the brand’s European-based retail business and possibly bring in a partner on its university-branded apparel business, according to sources. Potential partners include Under Armour and Fruit of the Loom’s (asi/84257) Russell Athletic, Axios Pro reported.

Headquartered in New York City and private equity-owned, Authentic Brands Group’s portfolio includes Aeropostale, Bandolino, Billabong, Brooks Brothers, Eddie Bauer, IZOD and Van Heusen. Sources have previously warned that Authentic Brands’ purchase of Champion could result in thousands of employees losing their jobs because Authentic Brands would likely source much of the manufacturing, design, logistics and operation to other companies.

Winston-Salem, NC-headquartered HanesBrands announced in September that it was undertaking a strategic evaluation of its global Champion business, eventually determining to sell the iconic brand amid pressure from activist investor Barington Capital Group, which called on the clothing maker to slash costs and beef up cash as its financial performance weakened.

Free-falling Champion sales contributed to HanesBrands’ ongoing financial struggles in the first quarter of 2024. Across its entire global business, HanesBrands’ sales fell 17% year over year in Q1, while the apparel maker sustained a loss of $39.1 million, or -$0.11 per share.