Retail Shock: Outdoor Voices to Shutter All Stores by Sunday

Outdoor Voices is living up to its motto, but likely not in the way it hoped. The brand known for “Doing Things” is shuttering its 16 U.S. stores at the end of this week, according to reports from its retail employees.

The 11-year-old Austin, Tex.-based athleticwear label has laid off store associates across the country, with plans to take the business fully online. The workforce was notified Tuesday, according to posts on social media.

More from Sourcing Journal

• Activist Files Lawsuit to Ensure Gildan Annual Meeting Takes Place as Scheduled

• Retail Posts Slight Job Gains in February

• What Macy's 150 Store Closures Say About Retail and the Consumer

“If you’re near a store, head in for 50% off – please be extra nice to any employees who are left, as they were suddenly laid off with no severance yesterday,” one Reddit user wrote.

“Can confirm. All stores are closing. 50% off until Sunday. PLEASE be nice to employees. They laid all of us off with NO warning whatsoever,” another user wrote.

A Reddit user who claimed to be a supervisor at Outdoor Voices’ San Diego, Calif. location said employees were blindsided by the decision as they had been “reassured that everything was fine” with the brand. “We were planning events. Working on hiring new people. And completely out of the blue yesterday, we all got the news.”

Another supervisor from the brand’s Flatiron store in New York City said the location’s staff was notified via email that their jobs would be terminated. “I’ve worked there for almost a year and had nothing lined up I am absolutely appalled with how this has been handled,” they said.

The brand turned off comments on its Instagram posts on Wednesday.

Outdoor Voices, which also has locations in Texas, Massachusetts, Arizona, Washington, D.C., Florida, Colorado, Illinois, North Carolina and Georgia, did not file Worker Adjustment and Retraining Notifications (WARN) in any of the states in which it operates. Under the federal law, employers with 100 or more employees are required to provide notification 60 calendar days before planned closings and mass layoffs.

According to the Department of Labor, a company that violates the WARN Act notice requirement is liable for back pay and benefits for each employee for up to 60 days. Workers or a union can file a lawsuit in Federal court in order to exercise their WARN rights.

The newly announced store closures come after months, if not years, of speculation about the health of the business and the future of the brand.

Founded by millennial entrepreneur and Parsons graduate Ty Haney, Outdoor Voices was a unicorn startup that raised $7.5 million in investments in its first two years on the back of its pastel, color-blocked leggings and sports bras. Former Gap, Inc. CEO Mickey Drexler was appointed chairman of the board in 2017, and the brand shot into the stratosphere, earning a $110-million valuation by 2018.

Haney left the brand suddenly in 2020 amid rumors of mismanagement in her role as CEO and reported infighting with Drexler, and valuation took a nosedive, falling to $40 million. The erstwhile executive has remained an outspoken commentator on her former venture’s perceived missteps, including losing focus on core offerings and releasing subpar product.

Ashley Merrill, current chairwoman of the Outdoor Voices board, replaced Drexler in 2020, and attempted to right the ship. The founder of sleep and loungewear brand Lunya told WWD in early 2021 that Outdoor Voices had moved past the turmoil caused by Haney and Drexler’s warring and the founder’s abrupt departure, saying that the company was again profitable.

But its problems have not abated in the years since.

Fans have for months been baffled by frequent markdowns bordering on product liquidation. “Can someone please explain to me what is happening with Outdoor Voices?” Washington, D.C. content creator and TikTok user @ventureswithmimi asked in a recent video.

“Every other day I get an email that everything is on sale…. And now the exercise dress is $20—since when can you pay $20 for the exercise dress?” she said. “I remember a time when there was like a waitlist to get certain colors.”

“[J]ust got the email that ov is having ANOTHER extra 50% off clearance sale but it looks like nearly their entire inventory is on sale … whats going on ????” a Reddit user posted in the r/outdoorvoices Subreddit on Feb. 24.

Behind the scenes, the beleaguered brand has apparently been looking to redefine its business model by backsliding into digital nativity after years spent building out its physical retail presence. Outdoor Voices closed its hometown flagship store in Austin in January of last year, followed weeks later by its Melrose, Ave. location in Los Angeles. In January 2024, it shuttered its Nashville, Tenn. boutique.

The remaining locations, in cities including Boston, San Francisco, Miami, Chicago, Minneapolis, Scottsdale, Denver and Atlanta, will be closed on Sunday.

Outdoor Voices did not immediately respond to a request for comment.