Outdoor Voices, once celebrated for its popular activewear, has shocked employees by abruptly announcing the closure of all its stores on Sunday.
According to reports from various news outlets, including Axios and The New York Times, the Austin-based company is shutting down all 16 of its stores. Employees, speaking anonymously for fear of reprisal, disclosed that they received the news of the closures via an internal Slack message on Tuesday. The message stated that Outdoor Voices would transition to an exclusively online business, with stores offering merchandise at a 50% discount before closing for good by the end of Sunday.
Reports indicate that few corporate or retail workers were offered severance or compensation, with store managers being offered a mere $500 incentive to continue working through the weekend. This decision was met with disappointment and frustration from employees, with one describing it as “an absolute slap in the face.”
Amidst backlash, some full-time employees have reportedly been offered severance packages, as per a late Thursday update.
The company has remained silent in response to inquiries from news outlets, including USA TODAY. However, some employees were informed that the company could potentially be sold after the closure of stores, with plans to continue selling the brand’s products through an ecommerce platform under the Outdoor Voices name.
What is Outdoor Voices? And what is happening with the retailer?
Founded by Tyler Haney, a graduate of the Parsons School of Design, Outdoor Voices emerged on the scene in 2014, gaining early recognition when its products hit the shelves at J.Crew. After relocating its headquarters from New York to Austin, Texas, in 2017, the brand experienced rapid growth fueled by substantial investment capital.
By 2019, Outdoor Voices had expanded its presence significantly, opening stores in major cities across the United States, including Atlanta, Boston, Chicago, and San Francisco. With its unique blend of athletic wear and lifestyle branding, the company drew comparisons to industry giant Lululemon, garnering attention from publications like The New Yorker.
However, despite its initial success, the company faced challenges that led to a decline in its valuation. From a peak of $110 million in 2018, Outdoor Voices’ valuation plummeted to $40 million by 2020, as reported by The New York Times. In February 2020, Tyler Haney stepped down from her role as chief executive officer but remained on the company’s board. Haney expressed disappointment with the brand’s direction, lamenting its decline in a 2023 interview with The Cut.
Amidst its struggles, Outdoor Voices began shuttering some of its stores, starting with locations in Los Angeles, followed by the closure of flagship stores in Austin’s Clarksville neighborhood and Nashville in January, and Philadelphia in February. These closures marked a significant shift for the once-prominent athletic wear retailer, signaling broader challenges within the company.