Is too much sneaker inventory a headwind in footwear?
On the heels of the bankruptcy of sporting goods chain 303 Board, A Sneaker City Albany Inc. filed for Chapter 11 bankruptcy court protection on Friday.
According to a statement filed with a federal bankruptcy court in New York, Sneaker City’s president Brandon Gutierrez said the retail store specializing in the sale of sneakers, apparel and accessories began operations in September 2021 and at one point operated 16 stores.
Most of those stores have “failed and many of the landlords commenced action” against the company for its corporate guarantee.
The Chapter 11 petition noted that revenues for 2024 were listed at $392,141, and climbed higher in 2025 to $479,487. But revenues for Jan. 1, 2026, to the July 10 filing date was listed at just $162,000, following the closure of most locations.
Landlords are it biggest creditors at nearly $2.4 million: Roosevelt Field, Garden City, N.Y., $970,657 (listed as dispute); Mall at Concord Mills, Concord, N.C., $606,200; Woodfield Mall, Schaumburg, Ill., $256,299; Mall of Georgia, Buford, Ga., $168,251; Newport Centre, Jersey City, N.J., $111,755.; Grapevine Mills Mall, Grapevine, Tex., $92,701; Florida Mall, Orlando, Fla.; $66,518; Sawgrass Mills, Fort Lauderdale, Fla., $43,542, and Dadeland Mall in Miami, Fla., $35,731.
The filing listed five store locations that have been shuttered, with only a store in Albany and the company website still in operation.
The company also has lawsuits pending for breach of contract with their former landlords at Concord Mills, Newport Centre, Grapevine Mills Mall and Woodfield Mall.
The petition said funds will be available for distribution to unsecured creditors. It listed total assets at $47,636 and total liabilities at $2.4 million.
This year, there were indications that sneaker sales might be showing signs of slowing growth, although by how much was unclear. A senior executive at leading sports goods retailer Sport 2000 in Europe said the lifestyle footwear segment is under pressure due to elevated inventory levels, resulting in heavy promotions in the first half of 2026.
Nike when it reported its fourth quarter earnings report on June 30 said that while it saw growth in North America, it also posted declines in Greater China and EMEA (Europe, Middle East, and Africa).
In addition, dress shoes are starting to take center stage, as fashion trends shift and interest changes. While technical, athletic performance shoes are still garnering sales, it’s the fashion lifestyle sneakers that that are seeing some shifts as consumers gravitate more toward low-profile silhouettes, such as Mary Janes and ballerina styles.
