Thread regarding Nike Inc. layoffs

Keep in mind the Converse we know won’t be the Converse we will see post transaction. PE will buy it, with the intent to flip it. And they will be ruthless… and will find success. And that’s the problem. A few malls in CA have a Converse door three to five stores away from a Nike store.

Someone else owning Converse… that will ruthlessly manage it into success will further pull lifestyle dollars out of Nike doors.

But your three-years-post-MBA-consultant-deck-builder won’t include that in the slides or the speaker notes.

No reason to believe we couldn’t see a 2032 USA Olympics Streetwear in a non-Nike owned Converse. It just creates more competition, and admits defeat that we lack the operational rigor and any sense of a functioning leadership spine.

Funny enough I actually think Nike should scale back from other categories before selling something as iconic as Converse that was acquired for basically nothing. But I think Converse is better off with new ownership. Doesn’t fit Nike. Only Nike/Jordan can coexist.

@a7 A

I’m not sure I understand the licensing model. But yes, I think they should sell . Just like they did with Umbro, Cole Haan, and (sadly, because I love their products) Hurley. As I’ve stated previously, Converse is a strategic and financial drag. It is too small a fraction of Nikes business in these turbulent times to be worth the distraction. Whoa I’m a poet!

My guess is keep the brand as an asset, and license it out to someone else to do all the work. That way they have options to build it back out later, but don't have to spend money keeping it on life support. I think we would have seen more signs of investment if there was a plan to turn it around any time soon.

IMO, yes.

Would you rather…
A.) Take the money and run
B.) Trust the current leadership and culture of Nike/Converse to turn it around