Source: Forbes
Summary
The recent bankruptcies of outdoor sport chain 303 Boards and Sneaker City indicate a surplus of sneaker inventory at retail. According to reports, 303 Boards filed for Chapter 11 bankruptcy, citing a decline in sales and an overstock of sneakers. Sneaker City also filed for bankruptcy, stating that it was unable to compete with larger retailers. The bankruptcies suggest that the sneaker market is experiencing a glut of inventory.
Our Reading
The trend returns with a new name. The sneaker market’s cyclical nature is on full display, as retailers struggle to clear out inventory. 303 Boards and Sneaker City’s bankruptcies are a symptom of a larger issue – a market oversaturated with product. The same styles and brands that were once in high demand are now collecting dust on shelves. The sneaker bubble is bursting, and it’s déjà vu all over again.
Author: Evan Null
