Nike boss hangs up his running shoes

PHILIP Knight, co-founder of Nike, is to step down as chief executive of the business he nursed from start-up to a market value of $16bn (£8.7bn).

Knight set up Blue Ribbon Sports in 1962 with Oregon track coach Bill Bowerman and began selling athletics shoes from the boot of his car.

Since renaming it Nike in 1972, business has soared, outstripping rivals Reebok and Germany's Adidas in the US where Nike has about a 40% market share.

Knight was a key figure in turning trainers into fashion symbols, revolutionising the industry.

One of his masterstrokes was signing a young Michael Jordan in 1984 to an endorsement deal that produced the Air Jordans, the world's top-selling trainers.

Knight will be succeeded next month by William Perez, 57, who ran privately-held consumer products firm SC Johnson & Son. Knight, 66, who also will give up his title of president, plans to remain chairman of the board.

'In the near term, I will focus my efforts on ensuring an effective transition and on evolving into my role as an active chairman,' Knight said in a statement.

Perez will have to concentrate on finding new arenas overseas as the company faces a mature market at home.

Analysts say he is well equipped for the task, with a strong background in international marketing.

Nike's stock price is trading at around $85 a share, near an all-time high.