Company Will Offer Refunds to Buyers of ‘Satan Shoes’ to Settle Lawsuit by Nike

A Brooklyn company that was sued by Nike over the unauthorized sale of Satan Shoes — an aftermarket sneaker that contains a drop of blood and was promoted by the rapper Lil Nas X — agreed on Thursday to accept returns of the footwear as part of a settlement.

The company, MSCHF, will offer refunds to people who want to return the sneakers under the terms of the settlement, according to Nike, which said in a statement that the purpose of the “voluntary recall” was to remove the shoes from circulation.

The settlement came a week after a U.S. District Court judge in Brooklyn granted Nike a temporary restraining order against MSCHF (pronounced mischief) after it sued the company last month.

A total of 666 pairs of the Satan Shoes were produced by MSCHF, which incorporated drops of its employees’ blood and ink into an air bubble in the Nike Air Max 97 sneakers. Each pair cost $1,018. They sold out in less than a minute last month.

“Luke 10:18” — a reference to the biblical passage that says, “I saw Satan fall like lightning from heaven” — is printed on them.

A previous line of unauthorized Nike sneakers that MSCHF sold, which was named the Jesus Shoe and contained holy water, can also be returned for a refund, Nike said.

“In both cases, MSCHF altered these shoes without Nike’s authorization,” Nike said in a statement on Thursday. “Nike had nothing to do with the Satan Shoes or the Jesus Shoes.”

A lawyer for MSCHF did not dispute that the company had agreed to the voluntary buyback, but said on Thursday that he could not disclose the terms of the settlement.

music video for his song “Montero (Call Me by Your Name),” in which he gyrates on Satan’s lap.

In the song, Lil Nas X, who was born Montero Lamar Hill, “cheerfully rejoices in lust as a gay man,” wrote Jon Pareles, the chief music critic for The New York Times.

Lil Nas X came out in 2019. The song’s title is an apparent reference to “Call Me by Your Name,” a novel about a clandestine summer romance between two men that was adapted into a film.

Mr. Bernstein said all but one pair of the Satan Shoes had been shipped to buyers before the temporary restraining order had been issued on April 1.

He described the sneakers, which are individually numbered, as works of art that represent the ideals of equality and inclusion. Mr. Bernstein said MSCHF had looked forward to arguing that its activities were covered under the First Amendment right of artistic expression.

“However, having already achieved its artistic purpose, MSCHF recognized that settlement was the best way to allow it to put this lawsuit behind it so that it could dedicate its time to new artistic and expressive projects,” he said.

Nike said it would not be responsible for any issues with sneakers that people decide to keep.

“Purchasers who choose not to return their shoes and later encounter a product issue, defect, or health concern should contact MSCHF, not Nike,” the company said.

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Zappos Chief Executive is Looking For a Way Forward

It was never going to be easy to succeed Tony Hsieh, the celebrated chief executive of Zappos, who turned a tiny online shoe seller into a $1 billion behemoth through an obsessive focus on corporate culture and happy employees. But Kedar Deshpande took over at a particularly fraught time.

Zappos, which is owned by Amazon, was already navigating remote work and grappling with pandemic-driven changes in how people shop when Mr. Hsieh abruptly retired in August after two decades, which led Mr. Deshpande to be named C.E.O. Then in November, tragedy struck: Mr. Hsieh, 46, died from injuries suffered in a house fire in New London, Conn., sending shock waves throughout the roughly 1,500-person company, as well as tech and entrepreneurial circles.

Since then, it has been reported that Mr. Hsieh had been behaving erratically for months and that friends had considered staging an intervention last summer. The revelations brought new scrutiny to the circumstances of his exit from Zappos.

Mr. Deshpande, who was previously Zappos’s chief operating officer, said that when Mr. Hsieh told him last summer that he wanted to pursue other projects, he did not push back.

Las Vegas can survive without its chief architect.

has claimed that it is harder to get a job at Zappos than it is to get into Harvard.

Mr. Deshpande said Zappos employees had become closer in some ways in the past year as they brought family or pets into the remote-work fold.

“The Ones,” which is tailored for female sneakerheads and advertised as “powered by Zappos.”

VRSNL, a luxury site that has its own web address and no visible link to the shoe site. It features wares from designers like Dolce & Gabbana and Proenza Schouler. The company has been pouring new effort into product detail pages and informational videos catered to audiences like new runners, and even co-developing merchandise and campaigns with the brands it carries.

“What online fails to deliver, which physical delivers today, is around these different experiences,” Mr. Deshpande said. “Until you actually go and deliver on these experiences, people will go back to the physical, in my opinion, and they will stay online for only transactional experiences.”

The company refers to these efforts as “experience commerce,” and said the category was driving 25 percent of its investments. Outside of prompting consumers to explore more, Zappos is also trying to make online shopping more cohesive — all with the aim of getting consumers to spend more money over time.

“One of the challenges has been that when somebody walks into ‘online,’ somebody looking for a jacket, for example, we show them inventory next to each other — like a $30 jacket, $50, $100, $300,” Mr. Deshpande said. “This is a very disorienting experience.”

In his view, all of the efforts are in line with Zappos’s obsessive focus on service for the past 20 years, which he anticipates remaining its focus for the next 20 years.

While the company is still grieving Mr. Hsieh, Mr. Deshpande said, employees will continue to embody the values that he championed. He pointed to an instance during the holidays when one employee mentioned children missing out on meeting Santa Claus during the pandemic, leading to a multidepartment effort to set up Santa Zoom meetings for children around the country.

“To me, Tony’s legacy is around delivering this happiness to everybody,” Mr. Deshpande said. “This culture he has created or pioneered, it’s going to be alive.”

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