Seen through a store window, a Nike employee stands at the entrance to the Nike SoHo store in New York City.
Drew Angerer | fake images
Nike said Monday that the vice president and general manager of its North America division, Ann Hebert, left the retailer, effective immediately.
His abrupt departure comes after serving more than 25 years with Nike. The company said it plans to announce a new advantage in North America shortly.
The reorganization follows a Bloomberg Businessweek article last week about Ann’s 19-year-old son, Joe. The report revealed that she had used a credit card in Ann’s name to purchase sneakers for her resale business, West Coast Streetwear. He said he spent more than $ 100,000 on the card to buy limited edition shoes and flip it for a profit.
His business has been booming, even during the Covid pandemic, Bloomberg reported. He described how Joe has been able to buy shoes at even greater discounts at retailers like Foot Locker and sell them for more and more money.
West Coast Streetwear could not immediately be reached for comment. A Nike spokeswoman told CNBC that Herbert made the decision to resign and declined to comment further.
Joe acknowledged to Bloomberg that Ann is his mother, but commented that she was high enough in the company to be cut off from what he was doing. He told Bloomberg that he had never received inside information, such as discount codes, from his mother.
A Nike spokeswoman also told Bloomberg that Ann disclosed relevant information about WCS LLC to Nike in 2018.
After working in various sales positions at Nike, beginning in 1995, Ann worked her way up to positions that include head of sales for North America, head of Nike’s Asia Pacific and Latin America divisions, and ultimately , Head of North America: A job took on in June of last year.
Most recently, he was responsible for helping to accelerate Nike’s direct-to-consumer strategy, whereby the brand has become less reliant on wholesale partners, such as sporting goods stores, and more reliant on its own stores and website to reach the buyers.
Ann could not be immediately reached for comment.
Shares of Nike were unchanged in after-hours trading, after closing Monday up 2.13% at $ 137.65. The company’s shares have risen 54% in the last 12 months. Nike has a market capitalization of $ 217 billion.
Read the full statement from Nike here.