Nike scraps Phoenix manufacturing plant plan

Due to the coronovirus epidemic, Nike is digging up its plan to make soles for its Nike Air shoes in the Phoenix suburb, the world’s largest sports apparel manufacturer announced on Tuesday.

The company had decided to invest $ 184 million in its third US manufacturing line for Nike Air sneakers in Goodyear, Arizona.

Nike spokesman Greg Rositer said, “We are experiencing unprecedented times and we will not invest in our Goodyear facility due to the COVID-19 effect.”

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Naik said last year he planned to open the plant in 2020.

Rossiter did not tell the Associated Press whether the plant had commenced operations.

Nike suffered a loss of $ 790 million in the fourth quarter, as digital sales in most stores around the world did not result in a loss of revenue. The company said last month that its revenue fell 38 percent to $ 6.31 billion in the three-month period ended May 31.

The company is struggling with costs associated with reducing bill mark-ups, including wholesale markdowns and factory order cancellations. Products for bulk customers fell 50% during the shipment period. Chief Financial Officer Matthew Friend said the company expected its inventory in the fourth quarter to grow 30% to the right size by the end of the second quarter.

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Nike’s Goodyear feature was the subject of controversy last year when Arizona Gov. Doug Ducey threatened to pull state incentives due to the company’s decision not to sell Nike Air Max 1 USA shoes, which included a revolutionary-era symbol, Such as the Betsy Ross flag.

Former NFL quarterback Colin Kaepernick, who has a high-profile endorsement deal with Nike, told the company that the flag recalls an era when black Americans were enslaved and appropriated by white nationalist groups, A person familiar with the conversation called A.P. Last year.

The Associated Press contributed to this report.

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