NEW YORK (AP) -- Levi Strauss will eventually part ways with Dockers -- sign a deal to sell its brand once the popularity of "Casual Friday" is pushed to the authentic brand group.

The cowboy giant said in a Tuesday announcement that it has agreed to sell dock workers to the real for up to $391 million. The deal will start with an initial value of $311 million and will likely add another $80 million to the business performance based on the new ownership.

With San Francisco-based Levi Strauss focusing on the chain’s core Levi brand, and the company’s Yoga acquired in 2021, as more consumers continue to be comfortable to sportswear.

Levi Strauss CEO Michelle Gass said in a statement that the sales dock workers “further align our portfolio with our strategic priorities, while thanking the Dockers team for their commitment to building the brand, she said “continue to be the authority of the Khaki department.”

Jamie Salter, founder and CEO of New York-based Authenticity, called Dockers a "natural fit" for his company's models. Dockers, he said, “has played a key role in shaping the casual workwear we know today, and we see a huge potential to grow the brand in this legacy and across categories.”

Levi Strauss launched Dockworkers in 1986, and the brand quickly became a staple for "Casual Friday". Many office workers turned to dockworkers’ khakis and loose buttons to replace more traditional business outfits. While this is not the only creator of the clothing-wearing office appearance, dockworkers have been widely a part of the rise of "College Friday", especially in the 90s.

But the nearly 40-year-old brand has been struggling in recent years – especially since the beginning of the Covid-19 pandemic, when many shoppers began working from home, many shoppers have switched their khakis for more comfortable clothes such as yoga pants and other sports. Even when returning to the office, many dress codes remain more relaxed than before.

Levi Strauss said it began "evaluating strategic alternatives" for Dockers last October, citing poor performance at the time.

Levi Strauss said Tuesday that it is expected to sell terminals to real sales in the U.S. and Canada around July 31, and customary closure conditions will be undertaken in January 2026 for the remaining operations.

Levi Strauss reported $216 million in profits and revenues of $6.36 billion in fiscal 2024.