Nike CEO Says Employee Policies Will Be Updated After Sneaker Resale Scandal

John Donahoe acknowledged that the scandal involving former VP Ann Hebert had eroded customers’ trust in the brand.

By
Footwear 
26,782 Hypes 16 Comments

Nike CEO John Donahoe has addressed the recent scandal involving former North American vice president and general manager Ann Hebert, saying that the company is planning to update some of its employee policies in response.

Hebert voluntarily resigned last week after more than 25 years with the company. Bloomberg first broke news of the scandal, which involved Hebert’s 19-year-old son and his sneaker resale business. According to the report, Hebert’s son used an American Express credit card in her name to purchase limited-edition sneakers and flip them for profit.

Complex, which reviewed of a recording of the virtual all-hands meeting on Monday, says that Donahoe acknowledged that the scandal had eroded customers’ trust in the brand.

“There’s no value more core to who we are than the trust our consumers put into us and our brand and our products,” he said. “And the fact of the matter is, this incident has sparked questions in some of our consumers about whether they can trust us, particularly around launch product.”

Donahoe spoke of making several changes, including auditing the launch process when the company releases limited-edition sneakers and updating the company’s policies to better handle issues surrounding the growing sneaker resale market.

Nike’s president of consumer and marketplace Heidi O’Neill also said during the virtual all-hands that an internal review had found that Hebert did not break any of the company’s policies despite her departure.

HYPEBEAST has reached out to Nike for comment.

On Tuesday, the company announced that Sarah Mensah will replace Hebert as VP. Mensah was previously the VP/GM of Nike’s Asia Pacific and Latin America region operations.

Read Full Article

What to Read Next

Nike's Third Quarter Sees 59% Surge in Digital Sales
Footwear 

Nike's Third Quarter Sees 59% Surge in Digital Sales

Reporting revenues of $10.4 billion USD.

Nike VP Ann Hebert Resigns Following Discovery of Family Ties to Sneaker Reseller
Footwear 

Nike VP Ann Hebert Resigns Following Discovery of Family Ties to Sneaker Reseller

The revelation came from a Bloomberg report about her son, Joe.

Nike CEO John Donahoe Issues Memo to Employees on Racism
Footwear 

Nike CEO John Donahoe Issues Memo to Employees on Racism

“[We must] get our own house in order.”


Nike's New ISPA Road Warrior Will be Priced at $500 USD
Footwear

Nike's New ISPA Road Warrior Will be Priced at $500 USD

One shoe for every situation.

A.P.C.'s Minimalism Meets sacai's Experimental Side In "INTERACTION#9"
Fashion

A.P.C.'s Minimalism Meets sacai's Experimental Side In "INTERACTION#9"

Featuring hybrid outerwear and jeans, as well as “SA.P.C.Ai”-branded essentials.

Jaden Smith's MSFTSrep Takes a Youth-Led 'Organized Rebellion' to City Streets
Fashion

Jaden Smith's MSFTSrep Takes a Youth-Led 'Organized Rebellion' to City Streets

An exclusive preview of the FW21 collection was revealed at this season’s Pitti Immagine Uomo.

Nike Dunk Low to Release in Colorful "Green Strike"
Footwear

Nike Dunk Low to Release in Colorful "Green Strike"

A vibrantly-accented women’s style.


New Titanium G-SHOCK Full Metal Gets Five Flavored Bracelet
Watches

New Titanium G-SHOCK Full Metal Gets Five Flavored Bracelet

The watch also features the debut of a new ultra-hard titanium alloy six years in the making.

Lorenzo Osti Carries the Weight of a Sportswear Legacy
Fashion 

Lorenzo Osti Carries the Weight of a Sportswear Legacy

The president of CP Company — and son of Massimo Osti — on returning to the brand his father built.

Nike Calls Out LeBron James' Accolades With This Lakers-Inspired Air Max 95
Footwear

Nike Calls Out LeBron James' Accolades With This Lakers-Inspired Air Max 95

The LA-inspired colorway mismatches the team’s colors between each foot and lists out The King’s achievements on the outsoles.

More ▾
 
Subscribe to our Newsletter

Gain access to exclusive interviews with industry creatives, think pieces, trend forecasts, guides and more.

By subscribing, you agree to our Terms of Use and Privacy Policy.

Adblock Detected.

We charge advertisers instead of our readers. If you enjoy our content, please add us to your adblocker's whitelist. We'd really appreciated it.