Outdoor Voices is shuttering its stores this week as it shifts to an online-only model.
The DTC activewear brand closed all 15 of its stores on Sunday, associates at several of its stores confirmed to sister publication Retail Dive. Employees were notified on Tuesday that stores would be closing and severance was not offered, according to the associates. Calls to other store locations went unanswered or went to voicemail.
The stores are running 50% off sales to clear through inventory through the weekend.
Store employees received a call from the Outdoor Voices director of retail on Tuesday relaying the news, according to one associate at the brand’s San Diego store. The associate said they were told 80% of the company’s headquarters staff, including the director of retail, has been laid off and just 10 employees will remain after Sunday. Associates at other locations could not confirm how headquarters staff were impacted.
Benefits offered to store employees appear to vary by location, according to the associates: Full-time employees at the San Diego store were offered $500 to stay on through Sunday, while full-time employees at the Minneapolis store were told their remaining PTO would be paid out and that store managers were offered $500 if they stayed on through the weekend; a Charlotte store employee said they weren’t offered any additional benefits for staying on through Sunday. Outdoor Voices did not immediately respond to Retail Dive’s request for comment regarding the store closures, severance payments, employee benefits or layoffs.
The activewear brand was among the original class of DTC darlings and became popular for its exercise dresses and “Doing Things” ethos. But over the years, Outdoor Voices faced a number of challenges.
Founder Ty Haney abruptly resigned entirely from the company in early 2020. By the summer, the company had a new chairwoman in Ashley Merrill, the founder of direct-to-consumer sleepwear brand Lunya. Merrill succeeded Mickey Drexler, who stepped down as chairman in the spring of 2020 after holding the position since 2017.
Soon after her appointment in 2020, Merrill said the company was shifting its focus to the more foundational parts of its business in order to reach profitability — something that was previously questioned.
“Everybody there is ready to start making the changes that we know need to be made to head towards profitability, and as we’re charting out the path, I think it’s very, very doable,” Merrill said at the time.
The activewear brand in the summer of 2022 was reportedly exploring options for the business, including putting itself up for sale, according to a Bloomberg report.
Like many digitally native brands, Outdoor Voices decided to take its products offline to expand its distribution and acquire new customers. The brand has stores across major U.S. cities, including Austin, New York, Denver, Boston, Chicago and Washington, D.C. Outdoor Voices’ website indicates that a Miami store was supposed to open soon.
