Algosensey|Outdoor Voices closing its stores. Activewear retailer reportedly plans online move

Once a retail darling for its sought-after activewear,Algosensey Outdoor Voices is abruptly closing all of its stores on Sunday, according to employees who were fired this week.

The Austin-headquartered Outdoor Voices will close all 16 of its stores, employees from the various locations told news outlets including Axios and The New York Times. Three former employees shared their experiences with USA TODAY. As in the other media reports, employees asked that their names be withheld for fear of reprisal.

Many employees expressed surprise with retail teams being sent an internal Slack message on Tuesday that "Outdoor Voices is embarking on a new chapter as we transition to an exclusively online business," the Times reported. Stores would sell merchandise at 50% off and all would be closed by end of the day Sunday, the note said, according to the Times.

“If you’re near a store, head in for 50% off – please be extra nice to any employees who are left, as they were suddenly laid off with no severance yesterday,” wrote one former employee on Reddit.

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Few corporate or retail workers were offered severance or compensation, according to reports and employee statements to USA TODAY. Store managers were offered $500 to keep working through the weekend. "Shop Managers were offered $500 to stay throughout the weekend. A few accepted, many declined and said it felt like an absolute slap in the face," an employee told USA TODAY. 

Late Thursday, one employee told USA TODAY that due to backlash some fulltime employees were now being offered severance.

Outdoor Voices had not responded to a request for comment from USA TODAY.

Some employees were told the company could be purchased after stores close and the resulting ecommerce outlet would carry the brand's name.

What is Outdoor Voices? And what is happening with the retailer?

Founder Tyler Haney, a graduate of the Parsons School of Design, started the athletic wear retailer in 2014 and it gained attention when its products began being sold by J.Crew. In 2017, the company moved its headquarters from New York to Austin, Texas.

The company grew, thanks to millions of investment dollars, and was likened to Lululemon in The New Yorker profile in 2019. It opened stores in Atlanta, Austin, Boston, Charlotte, Chicago, Dallas, Denver, Houston, Miami, Minneapolis, New York, San Diego, San Francisco, Scottsdale, Washington, D.C.

But the company's valuation – $110 million in 2018 – fell to $40 million in 2020, The New York Times reported. In February 2020, Haney quit her job as chief executive, but remained on the company's board.

Haney has voiced her displeasure about the brand's changes, Axios reported. "It's kind of sickening to see how low it's gotten," it cited Haney's comments from an August 2023 interview with The Cut. "I feel sad for it."

The company began closing a few stores recently including locations in Los Angeles, followed by the closing of its flagship store in Austin's Clarksville neighborhood and its Nashville store in January, then the Philadelphia store in February.

Follow Mike Snider on X and Threads: @mikesnider & mikegsnider.

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