The sneaker retailer files for Chapter 11, closing most of its stores

At some point, sneakers, which were only used for athletic performance, went out of fashion.

Before his wedding, my brother actually told me that he told his friends that they couldn’t wear Jordans with his Hugo Boss tuxedo. Being a bit older than the rest of the wedding party, sneakers have become so fashionable that it never occurred to me that some people would wear them in situations that called for dress shoes.

Clearly, sneakers have transcended culturally, with some models serving as luxury items despite their athletic roots. That shift helps explain why the resale market has grown so quickly and why collectors are willing to pay premium prices.

“What started as a niche culture among sneakerheads has now become part of everyday fashion. Sneakers have evolved into investment pieces, with some models seeing huge price increases,” Jens Kuhlmann, senior brand expert at Vinted, told AIM Group for its report, “The $30 Billion Business: How the Global Sneaker Race Became.”

Sneakers have also become an investment.

The unregulated aftermarket or resale market for sneakers and streetwear is growing at a rapid growth rate, with major sneaker brands (eg, Nike), constant drops of new releases, deep sneaker archives from which to draw for future releases, an endless aisle, digital markets such as community offerings and marketplaces. Transparency and Ease of Use,” according to Cowen’s Sneakers as an Alternative Asset Class.

This has created a market and launched many retailers specializing in selling and reselling sneakers. One of those chains, Soleply, filed for Chapter 11 bankruptcy earlier this year and has since closed four of its six stores.

According to court documents filed with PacerMonitor, Alone filed for Chapter 11 bankruptcy in March after taking on multiple debts and a temporary lease.

The sneaker reseller noted in its bankruptcy filing that the move was due to the “financial crisis” caused by “high-interest, short-term debt used to fund store expansion, which created a cycle of inventory shortages and cash flow volatility that ultimately proved unsustainable,” WWD.com reported.

The retail chain sells streetwear and sneakers from brands including Asics, Nike, Jordan and New Balance. It shared in its filing that while each store was initially profitable, the burden of debt repayment soon began to take its toll.

“Cash flow constraints forced Soleply to divert substantial revenue to debt payments, leaving insufficient capital to maintain adequate inventory levels,” the filing said. “As a result, some stores struggled to maintain the same level of sales, and the company faced increasing financial challenges.”

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The chain immediately closed four of its six locations, choosing to keep the Cherry Hill, New Jersey, and Plymouth Meeting, Pennsylvania, locations open.

Its revenue in 2024 was $8.8 million, down from $10.4 million in 2023, Sopley said in its court filing.

• Filed March 21, 2025, Chapter 11 bankruptcy: Soleply LLC filed voluntarily Chapter 11 Bankruptcy Protection in US Bankruptcy Court for the District of New Jersey (Camden). Under case no 25-12919Listing assets and liabilities between $1 million and $10 million, according to BKalerts.

• At the end of March 2025, store closures begin: After the filing, Soleply began closing most of its physical stores. Among the six locations it operates in the Northeast US, Four were closed As part of efforts to reduce costs and consolidate operations, Money Digest reported.

• On April 23, 2025, a meeting of 341 creditors was held: a Section 341 Meeting (a mandatory meeting of creditors where the company answers questions under oath) was scheduled for April 23, 2025As part of the Chapter 11 process, according to BKalerts.

• Reorganization goal: Under Chapter 11 Subchapter V, it aims to restructure its liabilities and emerge as a leaner business focused on its top-performing store(s), according to Money Digest.

• A Reorganization plan was confirmed in August 14, 2025. That means the bankruptcy judge approved a plan outlining how Soleply will restructure its debt and continue operating (or wind down) under court supervision, according to PacerMonitor.

• is Soleply LLC Still in an active Chapter 11 bankruptcy case in US Bankruptcy Court for the District of New Jersey (Case No. 1:25-bk-12919), reported infortc.

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While Soleply is fighting for survival, the company once had much bigger plans.

“Since our inception on January 9, 2021, amid the challenges of the pandemic, we have experienced a remarkable trajectory, rapidly expanding to seven locations with our eighth location on the horizon. This impressive growth is undeniably attributed to our unwavering commitment. Our ambitious approach to decision-making aims to establish 100 locations by 2030,” the company shared on its website.

And, while those plans have been detailed, at least for now.

RunRepeat shared some details on the growing sneaker release market.

• By the end of 2023, the entire sneaker resale industry will collect $11.5 billion in revenue, equal to 15.3% of the primary sneaker market.

• The used sneaker market will enjoy a compound annual growth rate of 16.4%, reaching $53.2 billion in total sales by 2032.

• The United States will continue to be the leading player in global secondary sneaker sales with total revenue of $2 billion by the end of 2023.

• Air Jordan and Nike dominate the sneaker resale market with a combined market share of 71.3% in 2020.

“Shoes occupy a unique space between fashion and collections. While many consumers buy sneakers to wear, there is a growing segment of buyers who see them as investment pieces. The scarcity of certain models and the high demand for limited editions create significant opportunities for professional sellers to thrive in these markets,” said Vendora CEO AIM Group.

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This story was originally published by TheStreet on December 28, 2025, where it first appeared in the Retail section. Add TheStreet as a preferred source by clicking here.