Nike, the world’s largest sportswear brand, has announced the closure of its digital sneaker subsidiary RTFKT as part of a strategic focus shift under new CEO Elliot Hill. RTFKT will cease operations by the end of January 2025. Since Hill took over in October, Nike has been undergoing leadership changes but has yet to reveal specific profit-turnaround strategies. The investor day event originally scheduled for November has been postponed to December 19.
RTFKT was acquired by Nike in 2021 during the metaverse and NFT boom for an undisclosed amount. The acquisition aimed to enhance Nike’s digital presence and capabilities by offering digital sneakers for purchase. With the closure of RTFKT, Nike is developing a new website to showcase and preserve its historical designs. Nike has not responded to requests for comments on the closure decision.
A company that Nike purchased in 2021 as part of its move into the metaverse announced on Monday that it’s ceasing operations.
RTFKT, pronounced “Artifact,” announced on X that it will “wind down” by the end of January. The company makes digital collectibles, including virtual sneakers.
“Looking back, we’re incredibly proud of everything we’ve achieved together,” RTFKT said in the post on X, noting that it made the first digital sneakers that could be turned into physical products.
One of the Nike RTFKT shoes was part of a recent sneaker exhibition at the Portland Art Museum.
In a September post on Medium, Nike said it was at least temporarily halting the production of non-fungible tokens, or NFTs, the sort of digital collectible made by RTFKT. But the company said it would continue partnerships with video game companies to build virtual products, including in-game wearables.
Nike recently announced its latest partnership with the video game Fortnite. Last year it announced a partnership with EA Sports, which makes video games.
The RTFKT announcement comes shortly after new CEO Elliott Hill started work.
While Hill hasn’t spoken publicly about his plans, recent company announcements suggest a return to a more traditional Nike playbook focused on athletes and sports.
Since Hill started work, Nike has announced new heads of human resources, sports marketing and legal. Hill is expected to make his first public comments as Nike CEO when the company reports earnings on Dec. 19.
– Matthew Kish covers business, including the sportswear and banking industries. Reach him at 503-221-4386, mk***@or*******.com or @matthewkish.
