Over the past decade, there's been an explosion in the sneaker market. Whether it's people killing each other for a pair of Jordans or waiting all night to cop a pair of Yeezys, reselling sneakers have definitely become a profitable business model.
I'm not a sneakerhead, but it's certainly something I've paid attention to in the last few years. I see people complaining about how they didn't win the latest raffle on the SNKRS app. There may be a reason for that.
Ann Herbert, who's been at Nike for 25 years, resigned after a story about her son's reselling business came out. She was named VP and General Manager of North America this past year.
Her son Joe Herbert, also known as West Coast Joe, was using his mom's credit card to buy sneakers and selling them for profit. It was reported he makes hundreds of thousands of dollars per month. He couldn't keep his mouth shut and talked to Bloomberg about his success in the resell business. Which obviously led to his mom's resignation.
So it turns out the SNKRS app is rigged in a way. It was reported Herbert spent $132,000 worth of limited-edition sneakers under one credit card. The dumbest part about that is she let her son use the company card.
It's incredible how much inventory West Coast Joe was able to get. Must be nice being able to use your mom's credit card and inside information to become rich. Spoiled rich kids always find a way. Sigh.
There have to be more people inside Nike doing this, right? If you can get your hands on limited-edition shoes and you can mark it up 1,000%, it's a no-brainer move. Probably the easiest money you can make.
It will be interesting to see how Nike handles this. To be honest, Ann Herbert worked her ass off for 25 years to finally get one of the highest positions just to quit because her son couldn't stop showing off on social media. Kids ruin everything, huh.
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