WHP Global and Authentic Brands Group are also considering purchasing Champion, in addition to Hanesbrands.

• Both WHP Global and Authentic Brands Group are interested in purchasing Hanesbrands' Champion line.
• For years, the retailer has been under pressure from activists to reduce costs and debt, despite being well-known for its basic T-shirts and underwear.
• The demand for Champion, a brand owned by Hanesbrands, is high, with estimated annual sales of approximately $2 billion.

CNBC has learned that WHP Global and Authentic Brands Group are both interested in purchasing Champion from its parent company, which is considering selling the sportswear line due to pressure from activist investors.

In late September, Hanesbrands revealed it was considering strategic options for Champion, about a month after Barington Capital Group started pushing the company to reduce expenses and increase profits as sales decline. The options included selling Champion or engaging in another strategic transaction, or keeping the brand.

According to sources, there has been significant interest in acquiring Champion from a variety of buyers, including WHP and Authentic Brands, among strategics and sponsors.

Champion has estimated annual sales around $2 billion, the people said.

If Hanesbrands proceeds with a sale, it's unlikely to choose a buyer until 2024, according to sources.

A Hanesbrands spokesperson informed CNBC that the company is currently assessing strategic options and determining the best course of action for its global Champion business while simultaneously continuing to implement its new, focused channel segmentation strategy, revitalizing the brand, and utilizing the work already accomplished to globalize product design and optimize the supply chain.

Neither WHP nor Authentic Brands responded to requests for comment. Goldman Sachs, who is advising Hanesbrands on its review of Champion, declined to provide a comment.

A deal that could make ‘perfect sense’

WHP and Authentic Brands have a diverse range of brands in their portfolios and could benefit from adding Champion to their lists. WHP recently acquired Bonobos from eBay and previously bought Toys R Us and Anne Klein.

According to sources, in addition to Champion, there is interest in purchasing Sperry from its parent company. In May, Wolverine announced that it was considering selling the popular boat shoe brand. The company declined to comment on the matter.

Recently, Authentic Brands, which owns brands such as Aeropostale, Brooks Brothers, and Juicy Couture, partnered with mega-retailer Shein to sell a co-branded clothing line with Forever 21, among other ventures.

Neil Saunders, a retail analyst and managing director with GlobalData, stated that WHP and Authentic Brands' interest in Champion is understandable.

Saunders stated to CNBC that these companies purchase struggling brands and have a history of revitalizing their performance.

They have a well-established operational framework that enables them to seamlessly integrate these brands into their business, whether through licensing, international expansion, physical retail, or direct-to-consumer sales.

Despite being a well-known sports brand, Champion has experienced a decline in global demand for its hoodies, workout clothes, and branded apparel, particularly in the U.S.

In the most recent quarter ended July 1, Champion brand sales decreased by 16% year over year, with a 25% decline in the U.S. and a 1% drop internationally. The company anticipates continued pressure on U.S. sales for the remainder of the year, according to executives.

The decline in sales at Champion is causing a broader slowdown across Hanesbrands, resulting in a revenue decline of approximately 8.5% in the six months ended July 1. Wholesalers have reduced their orders for T-shirts, bras, and underwear, contributing to the decline in sales. Hanesbrands' stock has fallen by about 34% this year.

In order to create long-term value for shareholders, Hanesbrands Chair Ronald Nelson must immediately focus on cash generation and debt reduction, as advised by Barington in a letter sent in August.

Hanesbrands declared that it was conducting a review of strategic options for Champion in order to streamline its larger business, increase growth, and enhance profitability.

Meanwhile, Sperry sales have also been sluggish for Wolverine Worldwide.

The decline in Sperry sales, which dropped to $57.4 million in the three months ended July 1, down 23.5% from the previous year, has contributed to a falloff in Wolverine's revenue, which decreased to $589 million during that quarter, off 17% from the year-ago period.

Wolverine’s stock is down more than 26% year to date.