Converse: Bankruptcy to Coolest Shoe

Converse, the company that invented the basketball shoe and whose Chuck Taylor All Star was once worn by 80% of professional basketball players, filed for bankruptcy in January 2001. The brand had been in decline for decades, losing its athletic credibility to Nike, Adidas, and Reebok in the 1970s and '80s. By 2000, Converse had only 2% of the U.S. athletic shoe market. Revenue had fallen to $205 million. The company closed its last American factory.

Nike acquired Converse out of bankruptcy in July 2003 for just $309 million -- a bargain that would prove to be one of the greatest acquisitions in fashion history. Nike's genius move was to not turn Converse into another Nike. Instead, they repositioned the Chuck Taylor as a fashion and lifestyle icon, not an athletic shoe. They collaborated with designers, artists, musicians, and streetwear brands. They kept the price accessible (under $60) while making the shoe aspirational.

Converse revenue grew from $205 million at acquisition to over $2.5 billion annually. The Chuck Taylor became the best-selling shoe model in history, with over 1 billion pairs sold worldwide. Nike paid $309 million for a brand now worth conservatively $10 billion+. From bankruptcy to one of the most iconic products in fashion.