Sneaker Reseller Soleply Files Chapter 11 Bankruptcy, Closes 4 Stores
Stephen Garner
Senior Editor
Soleply has filed for Chapter 11 bankruptcy after taking on too much debt and unsustainable leases.
According to a bankruptcy filing in New Jersey on Friday, the sneaker reseller noted that the move is due to “financial distress” largely driven by high-interest, short-term debt used to fund store expansions, which created a cycle of inventory shortages and cash flow instability that ultimately proved unsustainable.
FN has reached out to Soleply for comment.
Founded in Jan. 2021 by Thomas Yoder and Dustin Billow, two long-time sneaker enthusiasts who began their journey in sneaker resale during high school, Soleply started as an online venture and quickly evolved into a physical retail presence. This rapid expansion resulted in growing from its first store to six locations in high-traffic mall environments within just three years.
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The company – which sells streetwear and sneakers from brands like Yeezy, Asics, Nike, Jordan and New Balance – said 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 toward loan payments, leaving insufficient capital to maintain adequate inventory levels,” the filing said. “As a result, some stores struggled to sustain the same level of sales, and the company faced mounting financial challenges.”
And despite efforts to renegotiate lease agreements and debt repayment terms, Soleply was ultimately forced to close four of its six locations to consolidate operations and focus on its strongest-performing store in Cherry Hill, N.J.
The locations the retailer closed are in Capital City Mall in Camp Hill, Penn.; Mall at Prince George’s in Hyattsville, Md.; The SoNo Collection in Norwalk, Conn. and Christiana Mall in Newark, Del.
The filing said that the company is also aiming to get out of its lease at Providence Place Mall in Providence R.I. Plus, there are two other leases for unopened stores that Soleply is seeking to get out of, including shops at Crossgates Mall in Westmere, N.Y. and Destiny USA Mall in Syracuse, N.Y.
Soleply said in the filing that several landlords have threatened legal action related to these lease terminations, who are now seeking compensation for lost rental income, outstanding lease obligations, and, in some cases, penalties for breach of contract.
In the filing, Soleply stated that its revenues in 2024 were $8.8 million, down from $10.4 million in 2023. The company said that it expects to see a “steep drop off” in revenue due to the closing of these four locations in 2025.
But ultimately, Soleply is hoping this process will help it become a better business. “By filing for Subchapter V bankruptcy, Soleply seeks to discharge unmanageable lease obligations, restructure high-interest debts into more sustainable repayment terms, and emerge as a leaner, financially stable business capable of long-term success in the competitive sneaker market,” the filing said.
