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Nike drops plans for manufacturing plant near Phoenix

Posted at 1:24 PM, Jul 28, 2020
and last updated 2020-07-28 16:24:55-04

PHOENIX (AP) — Nike is withdrawing plans to make soles for its Nike Air shoes in a Phoenix suburb because of the coronavirus pandemic.

The company had planned to invest $184 million in its third U.S. manufacturing line for Nike Air sneakers in Goodyear, Arizona. Nike said last year it planned to open the plant in 2020.

Nike lost $790 million in the quarter ending May 31 as the pandemic forced the closure of most of its stores around the world. Nike’s Goodyear facility was the subject of controversy last year when Arizona Gov. Doug Ducey threatened to pull state incentives when the company stopped selling a shoe with the Betsy Ross flag.