Kontoor Brands ’ surprise announcement last week to divest Lee from its portfolio puts the denim brand, which has projected sales of $750 million this year, on the open market.

While intellectual property management firm Authentic Brands Group has emerged as a frontrunner to acquire the 137-year-old American brand, denim industry consultants say the ideal buyer would be one that actively reinforces the Lee’s workwear heritage rather than simply monetizing it.

Although Kontoor Brands president, CEO, and chairman Scott Baxter said Lee was positioned to return to revenue growth in the second half of 2026, the brand has struggled to articulate a clear identity.…