Sept 25 (Reuters) – Nike-owned sneaker brand Converse told employees it is pausing all marketing this week after an earlier advertisement sparked outrage for evoking imagery of the Ku Klux Klan and lynching, Bloomberg News reported on Friday, citing a person familiar with the decision.
Reuters could not immediately verify the report. Nike did not immediately respond to a Reuters request for comment.
Converse pulled the advertisement after facing public backlash last week and apologized, saying “we got this wrong.”
The ad showed the lower half of a person wearing a white, calf-length skirt-like garment, which critics said resembled a KKK robe. The person was featured holding black sneakers.
The images were part of a campaign for Converse’s Chuck 70 X sneaker, created in collaboration with Karina, a member of the K-pop group Aespa.
The ad also drew scrutiny from US lawmakers. In a statement on Monday, the Congressional Black Caucus said it was “deeply disturbed and disappointed by Converse’s decision to release this advertising campaign,” and that it would request a meeting with Nike executives.
Converse sales have dropped for 13 consecutive quarters, most recently tumbling 34% on a constant-currency basis in the fourth quarter.
Nike, which is set to report first-quarter earnings next week, is still facing significant obstacles as CEO Elliott Hill tries to turn around the business. Shares have fallen more than 40% this year as investors seek clear signs that Hill’s nearly two-year effort to revive growth is gaining traction.
(Reporting by Angela Christy in Bengaluru and Danielle Kaye in New York; Editing by Jonathan Ananda)
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