Was Nike’s Acquisition Of Converse A Bargain Or A Disaster? (2024)

FAQs

What was the downfall of Converse? ›

Although canvas-rubber shoes regained popularity in the 1980s as casual footwear, Converse eventually became too dependent on the "All Stars" basketball brand, whose market collapsed by 1989–1990. By 2000, Converse was slipping repeatedly into receivership as debt piled up yearly.

In a $305 million deal, Nike acquired ownership of Converse in 2003. What is this? To put the deal in context, Converse, which was founded in 1908, it was almost a century-old, iconic shoe company. Yet by the early 1990s, the company was going bankrupt.

Converse has been a perfect fit for the Nike – helping the company diversify its portfolio and also adding a new dimension to the company's footwear division.

Nike's Converse investment pays off

In 2003, Converse shoe brand's 95th anniversary, Nike bought the company for $305 million. At the time, Converse had annual sales of just over $200 million.

Nike filed a lawsuit against 589 websites allegedly selling counterfeit versions of its Nike and Converse shoes online.

During the 1970s, Converse began to struggle. Basketball players wanted footwear with leather uppers and harder rubber soles. Basketball athletes were becoming more athletic. They were faster and jumping higher than ever.

Since 2003, we have been part of Nike, Inc. Our shoes have gained added support, stability, and technology—and our workforce has too. Joining Converse today offers you global reach, personal impact and all the benefits of being owned by Nike, while working within a nimble and independent environment.

Nike relished the publicity and agreed to pay Jordan's fines, building a huge marketing campaign around the league's punishment. The "Banned" campaign led with the slogan: "On October 15, Nike created a revolutionary new basketball shoe. On Oct October 18, the NBA threw them out of the game.

On September 4, 2003, Nike (NYSE: NKE) acquired Converse for $315 million – two years after the latter filed for bankruptcy. Converse had annual sales of just over $200 million at the time of acquisition. Fast forward 16 years to Nike's fiscal year 2019 – Converse sales have ballooned to nearly $2 billion.

Competition from other brands leads Nike to focus on new innovations and new technology, with the goal of helping athletes perform better. Nike Air technology dates back to 1979, but some of their more recent developments include knits and other lightweight materials, foam cushioning, and sturdier support.

How did Converse become so popular? ›

While Converse made its name in the basketball sphere, the brand is also recognized as a wardrobe staple in skater closets, too. In the '90s, the sneaker gained popularity in the skate and punk scenes, and the label saw it as an opportunity to cater to another demographic.

'The Converse brand is iconic; the design style is simple yet classic,' Luke explains. Whether you are going to the market, on holiday, at work, or getting married; you can wear a pair of Converse sneakers. Their versatility eases stress for people who don't enjoy carrying a lot of clothes when they travel.

LeBron James Tops NBA Shoe Sales at $340 Million for Nike | News, Scores, Highlights, Stats, and Rumors | Bleacher Report.

Basketball icon Michael Jordan's sneakers from the 1998 NBA finals have fetched more than $2.2m (£1.8m) at auction - making them the most expensive pair of trainers ever sold.

In terms of price, both Nike Air Force and Converse Hi Tops are similar in cost, but Nike Air Force is usually more expensive due to the higher quality materials and construction. However, it's important to note that both brands release limited edition models that can be significantly more expensive.

They have gone from a basketball sneaker to one of the main choices in footwear for millennials. The fact that Converse Chuck Taylors have been around for nearly 100 years just assures me that they will never go out of style, and here are some key reasons why. Chucks go with any outfit you can think of.

“I think those who wear Converse don't care whether they are in or out of style, which is why they will never go away,” Melina Marissa, a digital fashion creator, tells NYLON. “They are just classics. Essentials. Been worn by so many types of people that they are past ever being a trend.

The answer is a resounding yes! These shoes are classic, comfortable, and versatile – everything you could want in a shoe. So go ahead and rock a pair of converse with pride. They're sure to keep you looking stylish for years to come.

It uses few lower-impact materials. To minimise waste, it reuses some of its textile offcuts. It's set a science based target to reduce greenhouse gas emissions in both its direct operations and supply chain but there's no evidence it is on track.