A longtime top executive at Nike resigned amid questions about possible ties to her son’s resale business and whether he used a credit card in her name for the company.
Ann Hebert, the vice president and general manager of Nike’s North American division, ‘left’ the company on Monday, Nike said in a statement.
In his statement, Nike said he would soon announce a replacement for her. Me. Hebert, who has been with the company for more than 25 years, made the decision to resign, the company said by email.
Her resignation comes a week after Bloomberg Businessweek published an article about the rise of West Coast Streetwear, a company that buys and sells limited-edition sneakers and clothing. Ms Hebert could not be immediately reached for comment.
West Coast Streetwear is owned by me. Hebert’s son, Joe Hebert (19), who buys large quantities of sought-after shoes, such as Yeezys and Jordans, for resale at higher prices. The purchases are completed using computer programs such as Cybersole, which are designed to increase opportunities to buy clothes in a limited edition, at hundreds of retail stores that often set the limit for purchases. The article states that Mr. Hebert and his team at one point spent $ 132,000 on hundreds of shoes and were able to sell them for a profit of $ 20,000.
The article also describes a statement for an American Express card that was in Hebert’s name and was shared with Bloomberg Business Week to illustrate the resale company’s revenue.
In the article, Mr. Hebert admits that the Nike CEO was his mother and said that she inspired him as a businessman. But he said her job at Nike was removed from his job and that she did not give him inside information.
Not Mr. Hebert of West Coast Streetwear did not respond to requests for comment Tuesday. While a website for the company was down Tuesday morning, Mr. Hebert’s Instagram account showed images of Yeezy, Jordan and other branded shoe boxes, some of which were stacked and others distributed in a warehouse.
Me. Hebert was promoted last April to her role as vice president and general manager of the North America division, and oversaw sales, marketing, merchandise and other areas, according to a statement.
A Nike spokesman told Bloomberg Businessweek that Hebert shared information about West Coast Streetwear with the company in 2018, and Nike said there was no violation of company policy or conflicts of interest at the time. Nike did not immediately respond to questions about its knowledge of West Coast Streetwear.
Sneaker exchange and resale have been popular since at least the 1990s, but have experienced a boom in recent years as the demand for collectible shoes and streetwear has increased. The increase in business is partly due to so-called sneakerheads, customers who view the items as investment assets. Major fashion brands also attacked by buying interest in resale stores such as Stadium Goods.
Hard-to-find models can be sold for hundreds or tens of thousands of dollars. For example, a pair of Air Yeezy “Red October” shoes can sell for more than $ 15,000, depending on the size.
John Kernan, a research analyst at Cowen, an investment banking firm, says managing the supply of certain shoes while demand is soaring.
While some industries have suffered or closed down due to the coronavirus pandemic, the market for sneakers and streetwear, both primary and resale, has flourished, according to a 2020 Cowen report.
The company estimates that the current market will amount to $ 2 billion, with the forecast of $ 30 billion by 2030.