By Josh Beckerman 

Nike Inc., which has struggled with logistics issues recently, said it has formed a supply-chain partnership with private-equity firm Apollo Global Management LLC.

Under the alliance, a new apparel supply chain company has purchased existing Nike apparel suppliers in North and Central America and will buy more to "create a more vertically integrated apparel ecosystem."

The new business has purchased apparel maker New Holland as well as embellishment, warehousing and logistics business ArtFX. Nike hasn't made a capital investment in the entity.

Nike's logistics issues have included complaints by some retailers of product delays in 2015. Nike opened a 2.8-million-square-foot distribution center in Memphis in June 2015.

The company's other recent supply-chain-focused moves have included a partnership with Flextronics International Ltd. on areas like automation and customization. In May, Nike expanded its European Logistics Campus in Belgium to "accelerate the company's drive toward the supply chain of the future."

Shares of Nike, down 8.5% this year, closed up 35 cents to $57.21 on Thursday.

Sara Germano and Shasha Dai contributed to this article.

Write to Josh Beckerman at josh.beckerman@wsj.com

 

(END) Dow Jones Newswires

August 18, 2016 18:50 ET (22:50 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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