A former high-ranking Nike executive resigned amid questions about possible links to his son’s tennis resale business and whether he used a credit card in his name for the company.
Ann Hebert, vice president and general manager of Nike’s North American division, “left” the company on Monday, Nike said in a statement.
In its statement, Nike said it would announce a replacement for it soon. Ms. Hebert, who had been with the company for more than 25 years, had made the decision to resign, the company said by email.
His resignation came a week after Bloomberg Businessweek published an article about the rise of West Coast Streetwear, a company that buys and resells limited editions of sneakers and clothing. Ms. Hebert could not be reached for comment.
West Coast Streetwear is owned by Hebert’s son Joe Hebert, 19, who buys large quantities of highly sought-after shoes, such as Yeezys and Jordans, for resale at higher prices. Purchases are completed with computer programs like Cybersole, designed to increase opportunities to purchase limited edition clothing at hundreds of retail stores that often set purchase limits. The article said that at one point Mr. Hebert and his team spent $ 132,000 on hundreds of shoes and were able to resell them at a profit of $ 20,000.
The article also described a statement for an American Express corporate card that was in the name of Ms. Hebert and shared with Bloomberg Businessweek to illustrate the company’s resale revenue.
In the article, Hebert acknowledged that the Nike executive was his mother and said she inspired him as a businessman. But he said that her position at Nike was removed from her job and that she did not provide him with inside information.
Neither Hebert nor West Coast Streetwear responded to requests for comment on Tuesday. While a company website was down on Tuesday morning, Hebert’s Instagram account showed images of Yeezy, Jordan and other branded shoe boxes, some stacked and others scattered in what appeared to be a warehouse.
Ms. Hebert was promoted to vice president and general manager of the company’s North American division last April, and oversaw sales, marketing, merchandising and other areas, according to a statement.
A Nike spokeswoman told Bloomberg Businessweek that Hebert shared information about West Coast Streetwear with the company in 2018 and that Nike reported that there was no violation of company policy or conflicts of interest at the time. Nike did not immediately answer questions about its knowledge of West Coast Streetwear.
The exchange and resale of sneakers has been popular since at least the 1990s, but it has experienced a boom in recent years as demand for collectible shoes and street clothes has increased. The increase in business comes in part from the so-called sneakers, customers who see the items as investment assets. Major fashion brands also stood out, buying stakes in retail stores like Stadium Goods.
Hard-to-find models can sell for hundreds or tens of thousands of dollars. For example, a pair of Air Yeezy shoes “Red October” can be sold for more than $ 15,000, depending on the size.
Managing the supply of certain shoes while demand for them skyrockets keeps buyers coming back, said John Kernan, a research analyst at Cowen, an investment banking firm.
While some industries have suffered or closed due to the coronavirus pandemic, the markets for sneakers and street clothes, both primary and retail, have prospered, according to a 2020 Cowen report.
The company estimates that the current market is at $ 2 billion, with projections to reach $ 30 billion by 2030.