Nike buys Converse

Nike buys Converse
BOSTON -- The company made famous by Chuck Taylor sneakers is getting a Nike swoosh.
Nike announced Wednesday that it is buying Converse for $305 million in a deal that gives the nation's No. 1 shoe maker an important piece of the growing retro footwear market: "Chuck Taylor All Star" sneakers. In return, Converse gets Nike's deep-pocketed backing and marketing depth.
Converse dominated the basketball shoe market from the 1920s to the 1970s with its famed canvas "Chuck Taylors." But Nike became the top player by the 1980s, thanks in large part to Michael Jordan and the wildly popular Air Jordans. Converse filed for bankruptcy in January 2001. Later that year, the North Andover-based company was bought by private investors who have tried to revive the brand.
Last year, Nike had $10.7 billion in revenue, while Converse reported $205 million.
Converse will be operated as a separate brand within the company.
Converse invented basketball shoes in the early days of the game. "Chucks" got their name from Chuck Taylor, a Converse salesman who traveled the country from the 1920s until the 1960s, evangelizing the game and selling shoes.