Popular sneaker chain files for bankruptcy... leaving fans concerned about the fate of the company
A much-loved sneaker chain has filed for Chapter 11 bankruptcy leaving fans concerned for the future of its stores.
Soleply, known for its high-end brands like Kanye West's Yeezy, filed for bankruptcy in New Jersey on Friday.
Chapter 11 bankruptcy protection will allow the company to keep operating while it reorganizes its debts and plans for a return to profitability.
The premier sneaker retailer currently has six locations across Delaware, Connecticut, Maryland, Rhode Island, New Jersey and Pennsylvania.
It offers some of the most coveted sneakers, including Nike's Air Jordans, as well as brands like Stussy, Guess, and Fear of God Essentials.
Soleply - which also sells t-shirts, sweatshirts, jackets and hoodies - has up to $10 million in debts, according to court filings.
Sneaker enthusiasts often travel from neighboring states to shop at Soleply’s stores.
Loyal customers are now worried the stores could close permanently, leaving them without a local spot to buy their favorite brands in-person.
Soleply stores sell some of the most coveted sneakers from Nike's, Air Jordan's to Stussy
Soleply is not the only footwear retailer to face headwinds in the current economic climate.
Foot Locker announced in last year that it planned to close 400 of its stores by 2026.
275 of the closures will be under the company's namesake brand while the rest will be Champs Sports locations, also owned by Foot Locker.
Sneaker stores have been hit by inflation which has pushed up retail prices while consumers pull back spending on non-essential items.
At the same time expensive to run bricks-and-mortar stores are struggling to compete with ecommerce giants such as Amazon and Temu.
As a result 2025 is expected to see double the store closures of last year.
A Coresight study predicts that more than 15,000 stores will close this year — more than double the 7,000 that shut down last year.
However, retail analyst Neil Saunders says the outlook isn’t as grim as it seems.
Disgraced rapper Kanye West owns sneaker and clothing brand Yeezy
Soleply operates six stores across six states including Delaware, New Jersey and Rhode Island
'The retail apocalypse is fake news,' Saunders of Global Data told DailyMail.com.
'While it is true that we’re seeing a rash of store closures, this is mostly because weaker players are dropping out of the market - because they have failed to convince consumers to shop with them.'
'The vast majority of retail sales still go through physical stores and many successful retailers, like Walmart, are investing heavily in their physical spaces,' he added.
Alongside closures, Coresight predicts that 5,800 physical stores will open across the country this year.
