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decided to sell its Converse subsidiary
Topic Started: Nov 18 2014, 01:59 AM (57 Views)
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In October and November, it laid off two more rounds of employees, and in December, just when it looked as if Converse was getting back on track with the decision to eliminate its outdoor, running, walking, tennis, and football product lines, its RAW Energy and RAW power basketball shoes literally sprang a leak, and the company was faced with the embarrassment and recall of 400,000 pairs of shoes. By year's end, converse uk womens posted a loss of $71.7 million, compared with profits of $17.6 million in 1994.Looking to regain momentum in 1996, Converse hired Glenn N. Rupp, former head of Wilson Sporting Goods Co., to replace Gib Ford, who retired as chief executive in that year.

Rupp believed converse all star ox should play to its strength as one of the few shoe companies with sizable domestic production facilities. Exploiting the marketability of the Made in the U.S.A. label, Rupp's goal was to decrease the time it took for an order to be filled from six to only a few weeks. Together with President Michael 'Mickey' Bell, who would resign abruptly in August.1996, Rupp undertook a restructuring of the nation's No. 5 athletic shoe company.Fortunately, for Converse, retro was in, and the company undertook its biggest campaign ever aimed at recapturing the glory of its past. Its All Star 2000, a leatherized update of its traditional basketball show, which featured an old-fashioned Chuck Taylor All Star patch, began selling at a rapid clip in 1997.

In the wake of this success, Converse All Star Canvas made plans to market the Dr. J 2000 basketball shoe and the All Star 91, or Dennis Rodman shoe, in spring 1997 in time for the NBA's 50th anniversary. The company entered into deals with Rodman, Latrell Sprewell, Larry Johnson, and ABL star Theresa Edwards (40 percent of Chuck Taylor high tops were purchased by women) to help market its updated old shoe designs. In addition, Converse initiated a licensing agreement with A4 of Los Angeles to produce its Star 91 line of apparel and footwear, as well as two other men's apparel lines. The idea was to leverage the company's history as a long-time staple among professional athletes and to play up the emotional ties people had to the Converse brand.

Unfortunately, by the end of 1997, people had shifted from wearing basketball sneakers and other athletic shoes to what the industry called 'brown shoes'—work boots, hiking shoes, and casual footwear in brown or black. Converse All Star Hi Top slipped to sixth place in its industry, posting a $5 million loss despite record sales of $450 million and an increase in revenues, while throughout the sector inventories bloated and sales showed signs of going flat. In early 1998, Converse cut more jobs and changed its marketing strategy, instituting its new 'Stay true' campaign, designed to appeal to 12- to 18-year-old athletes and featuring younger players at the start of their careers.
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