Austin's athleisure brand, Outdoor Voices Inc., is shutting down all of its physical locations by March 17 in a sudden pivot to focus solely on e-commerce. A move confirmed by staff at the retailer's South Congress store, where currently merchandise is flying off the shelves at a 50% discount, resulted in an impatient line of customers stretching around the block, as reported by the Austin Business Journal.
The company, which was famously situated at 1204 S. Congress Ave. in Austin, has cited a strategic shift amidst executive turnover and a steep decline in valuation over recent years. According to the New York Times, an internal notification relayed to some employees stated that “Outdoor Voices is embarking on a new chapter as we transition to an exclusively online business.” With stores peppered across major cities, from Atlanta to San Francisco, the immediate shuttering has come as a shock to many of the brand's employees.
Behind the trendy facade and active social media presence of Outdoor Voices lay a company struggling to keep its head above water financially. Just four years ago, in 2020, noted the brand's valuation had tumbled from approximately $110 million down to $40 million. Co-founder Ty Haney parted ways with her CEO position that same year, remaining on the board as the company tried to navigate through its various challenges.
The lack of severance for workers blindsided by the abrupt store closures has added to a growing aura of discontent. One employee expressed frustration over the lack of direct communication from current management, saying, "There is still no company wide statement or communication from [our] current CEO. Overall, there is a lot of disappointment and anger over the way this was handled," according to the Austin Business Journal. Despite the financial woes and the subsequent impact on its workforce, the company's history includes notable investment milestones, with a collective sum of $64.4 million raised since its inception.
With the industry observing these recent events, Outdoor Voices' strategy to transfer efforts to an online-only model remains under scrutiny. Will an online presence sustain the brand that sells not just clothing but a lifestyle, is yet to be seen. Meanwhile, the doors are closing, and for employees and loyal customers alike, the chapter ends not with a triumphant hashtag but with silences, unanswered questions, and a scramble to find a new fit.
