Converse pauses social media ads, marketing after racism uproar, Bloomberg News reports

Converse, a Nike-owned sneaker brand, has announced it will pause all marketing efforts this week following an advertisement that sparked outrage for its perceived association with the Ku Klux Klan and lynching imagery. A source familiar with the decision reported this to Bloomberg News on Friday, though Reuters was unable to independently verify the claim. Converse swiftly pulled the ad last week and issued an apology, stating that they had erred in their portrayal.

The problematic advertisement depicted the lower half of a figure wearing a white, calf-length garment that critics likened to a KKK robe, while the individual held black sneakers. These visuals were part of a campaign promoting Converse's Chuck 70 X sneaker, which was co-created with Karina, a member of the K-pop group Aespa.

The ad also drew criticism from US lawmakers. During a statement on Monday, the Congressional Black Caucus expressed deep distress and disappointment over Converse's decision to launch this advertising campaign, indicating that they would request a meeting with Nike executives. Converse's sales have declined for 13 consecutive quarters, with a 34% drop on a constant-currency basis in the most recent quarter.

Nike, whose CEO Elliott Hill is actively seeking to revitalize the company, is currently grappling with various challenges as the CEO attempts to restore growth to the business. Shares of Nike have plummeted over 40% this year, as investors eagerly await tangible evidence that Hill's two-year rejuvenation plan is yielding results.