NEW YORK (AP) -- Levi Strauss is set to finally part ways with Dockers -- inking a deal to sell its brand once credited with propelling the popularity of "Casual Fridays" to Authentic Brands Group.

In an announcement Tuesday, the denim giant said it had agreed to sell Dockers to Authentic for up to $391 million. The transaction will start at an initial value of $311 million, with the potential of adding another $80 million to the price tag based on business performance under the new ownership.

The sale arrives as San Francisco-based Levi Strauss boosts its focus on the chain's core Levi's brand -- as well as Beyond Yoga, which the company acquired in 2021, as more and more consumers continue to cozy up to athleisure wear.

Selling Dockers "further aligns our portfolio with our strategic priorities," Levi Strauss CEO Michelle Gass said in a statement, while thanking the Dockers team for their commitment to building the brand, which she said "continues to be the authority on khaki."

Jamie Salter, founder and CEO of New York-based Authentic, called Dockers a "natural fit" for his company's model. Dockers "played a key role in shaping casual workwear as we know it today, and we see significant potential to build on that legacy and grow the brand across a variety of categories," he said.

Levi Strauss launched Dockers back in 1986, and the brand soon became a "Casual Friday" staple. Many office workers turned to Dockers' khakis and looser button-downs in the place of more traditional business attire. While it was not the sole -- or very first -- creator of dressed-down office looks, Dockers has been widely-credited as an integral part to "Casual Friday's" rise, particularly in the 90s.

But the nearly 40-year-old brand has struggled some in recent years -- notably since the start of the COVID-19 pandemic, when many shoppers traded their khakis for more comfortable clothes, like yoga pants and other athleisure, as they began working from home. And even with returns to the office, many dress codes remain more relaxed than they were before.

Levi Strauss said it began to "evaluate strategic alternatives" for Dockers in October of last year, citing recent underperformance at the time.

On Tuesday, Levi Strauss said it expected to close Dockers' sale to Authentic around July 31 for the U.S. and Canada, pending customary closing conditions, and in January 2026 for remaining operations.

In its 2024 fiscal year, Levi Strauss reported profit of $210.6 million and revenue of $6.36 billion.