Outdoor Voices is planning to file for bankruptcy in the coming weeks, according to a report in Sourcing Journal, citing anonymous former employees with knowledge of the discussions.

The move would be a culmination of a string of missteps for the beleaguered athletic apparel start-up. As cash troubles mount, Outdoor Voices has missed rent and vendor payments in recent months, Sourcing Journal reported. The company closed all of its 16 retail stores last week to focus solely on its e-commerce business and fired most of its corporate staff, Puck News reported.

Outdoor Voices has dealt with financial issues for years. Founded in 2014 by Tyler Haney, Outdoor Voices was once a hit among Millennials who clamoured for its colourful athleisure in its signature geometric patterns. It would go on to receive investments from leading venture capital firms like Forerunner Ventures, General Catalyst and even French contemporary brand A.P.C.

By 2019, the company was overspending to acquire new customers and struggled to generate consistent profits. Haney, who was known as a great marketer but had challenges operating the business, exited the company in 2020. Following her departure, fellow entrepreneur Ashley Merrill — known for founding loungewear brand Lunya, which also filed for bankruptcy in 2023 — took a majority stake in Outdoor Voices and installed former Urban Outfitters exec Gabrielle Conforti as new chief executive in 2021.

Outdoor Voices first began looking for buyers in 2022, BoF previously reported, but Merrill bailed the company out with the intention of restructuring the business to achieve profitability. But the company’s mounting debt and cash burn appears to have grown untenable before those efforts could materialise.

Outdoor Voices couldn’t be reached for comment.

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Have Outdoor Voices’ Turnaround Efforts Worked?

Revenue at the once-hyped activewear brand, which put itself up for sale earlier this summer, is growing. But it will need to demonstrate its ability to consistently turn a profit to seal the deal with a potential buyer or investor.