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Reseller Zadeh Kicks Leaves Customers With Millions in Outstanding Orders



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 1 month ago '04        #1
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refuze  topics gone triple plat - Number 1 spot x6
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Reseller Zadeh Kicks Leaves Customers With Millions in Outstanding Orders
 

 
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One of the biggest names in the sneaker resale world pulled the plug on his business last week and seemingly scrubbed himself from social media yesterday, leaving customers with outstanding orders said to exceed millions of dollars in total.

Michael Malekzadeh, owner of Zadeh Kicks LLC, filed to voluntarily dissolve the company on May 19 in the circuit court of Lane county in Oregon, citing its rapid growth as rendering him unable to maintain the business. A message posted to its website yesterday afternoon states that a court-appointed receiver, David P. Stapleton, has taken over handling of the LLC’s a*sets.

The news spread quickly on social media, with hundreds of Zadeh Kicks customers coming forward to share their experiences—a small amount positive, but the majority of them horror tales of amounts as high as six figures tied up in the LLC’s dissolution. Because Zadeh Kicks operated primarily by offering preorders, buyers would pay months in advance for the product, meaning there are still an untold number of unfulfilled orders.

While much of the talk around the case hinges on speculation, these are the facts we know thus far.

What Is Zadeh Kicks?

Zadeh Kicks was established in 2013 as a sneaker resale company. Over the years, it became known for offering preorders for hyped sneakers far in advance of their official release date. The price points for the sneakers were often considerably lower than their expected market values, creating an enticing model for both resellers looking to stock up on product for lower-than-normal and average customers who wanted to avoid paying the high-end value.

When reports and rumors of new sneaker releases would leak, Zadeh Kicks would offer them for preorder almost instantaneously. This meant that there were sometimes cases where the shoes would never materialize as a retail release (e.g. Futura x Off-White x Nike Dunk Lows) or would be exclusively offered from one source (e.g. Fragment Design x Travis Scott x Air Jordan 1 Highs on SNKRS). In these cases, Zadeh Kicks would be unable to provide the sneakers and would instead offer buyers store credit or heavily taxed refunds, terms that were clearly stated on the website.

After preordering, buyers would usually receive their orders between six to 10 weeks after the official release date.

A peruse of social media presents a number of theories as to how Zadeh Kicks sourced his footwear, although no one seems to have a concrete explanation. Some of the more common unfounded theories include a close connection at a brand like Nike and/or ties with smaller retailers and boutiques.
Were Zadeh Kicks’ Sneakers Authentic?

One of the elements that made Zadeh Kicks so appealing to flippers and wearers alike was that despite their “low” ticket price, all signs pointed to the shoes being real. Dedicated subreddits and NikeTalk threads are filled with testimonials of Zadeh Kicks purchases passing authentication services like StockX and GOAT as well as brick-and-mortar resale stores.

While we’re unable to pinpoint the source of Zadeh Kicks’ product, there are no known examples of the shoes coming up inauthentic.

What Happened to Zadeh Kicks?

On May 19, Zadeh Kicks petitioned to voluntarily dissolve the LLC. A filing states that from around January 2020 to May 2022, the company “experienced exponential growth in business” primarily due to preorders. It says Zadeh Kicks was unable to keep up with the rapid growth due to inadequate “internal systems and processes.”

Because of the unmanageable growth, Zadeh Kicks is said to be unable to pay its debts owed. Preliminary estimates show the businesses’ liabilities are greater than its a*sets by more than millions of dollars.

As a result of the LLC’s dissolution, Zadeh Kicks requested the court to appoint a receiver who will now be in charge of managing the a*sets and paying back the company’s creditors.

“Dissolution of Zadeh Kicks will be complex and the company does not have the resources or capabilities to administer and manage all of the potential claims from creditors and third parties,” the filing reads.

David P. Stapleton of the Los Angeles Stapleton Group fiduciary has been appointed as the receiver.

It’s worth mentioning that this is not a bankruptcy filing as some social media posts have suggested. Instead, it is a voluntary dissolution of the LLC, something that is often achievable without judicial action, although this is a unique case.

“Here, since the claims against the entity appear to be far greater than the a*sets, it is prudent to have the court oversee the process,” Portland bankruptcy attorney Michael O’Brien tells Complex.

The filing states that on or around April 29, Zadeh Kicks stopped taking new orders.

Zadeh Kicks’ personal accounts on social media appear to have been deleted along with years’ worth of posts on his Instagram business account. This “disappearance” has no doubt factored in to buyer’s frustration and speculation around the situation.

What Happens Next?

The court-appointed receiver, David P. Stapleton, is now in charge of addressing claims against the business. Attorney Michael O’Brien tells Complex that under Oregon law, a receiver must file updates with the court within 60 days and every following two months.

A number of Zadeh Kicks customers are already sharing stories of chargebacks and filed claims to varying degrees of success. The most common thread is that buyers who made purchases recently have been able to get refunds or preliminary credits.

Those with longer outstanding orders that surpass PayPal’s 180-day claim window, or those that paid with a debit card that does not have the buyer protection of a credit card, may face more of a challenge getting a resolution. Another element at play is the fact that Zadeh Kicks often refunded buyers with store credit/gift cards, meaning that money could ultimately go unaccounted for.

“Adding up all my investments, I have a little over $100K tied up, but if you include the market value of the shoes, open orders, gift cards, all of that, it’s a little over $200K,” an anonymous customer tells Complex. “So far all my chargebacks with PayPal and credit card companies are pending, but I’m feeling optimistic. Most of them have given temporary credits while the investigation happens, and I’m hearing they are getting flooded with cases related to Zadeh.”

visit this link https://www.complex.com/s .. anding-orders/
He's been linked to Marcus Jordan

image.
+15   



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72 comments
 

 1 month ago '04        #2
refuze  topics gone triple plat - Number 1 spot x6 OP
Props total: 55031 55 K  Slaps total: 6450 6 K



I'm subscribed to his newsletter. Also have purchased a lot of shoes via his site before. You get great deals but like the article says, you don't get the shoes until 2 months after release date.

It sounded like he was running his business like a ponzi scheme. He was getting paid up front for pre-orders, but wasn't able to keep up with the demand. It's possible he lost his connections too.

This reselling sh*t runs deep
+44   

 1 month ago '06        #3
Be Easy 
Props total: 21059 21 K  Slaps total: 2451 2 K
it’s a shame kids and grown a*s men look up to kids and other grown a*s men for having fu*king shoes

I’ve been in this sh*t pretty much from the beginning and it’ll never make sense
+51   

 1 month ago '06        #4
Storchaveli  topics gone triple plat - Number 1 spot x5
Props total: 35216 35 K  Slaps total: 9136 9 K
If you buy shoes at resale, you lost.
+36   

 1 month ago '22        #5
Murderers  topics gone triple plat - Number 1 spot x9
Props total: 18327 18 K  Slaps total: 4373 4 K
We been talking about this sh*t all day on niketalk. This sh*t runs deep.
+10   

 1 month ago '16        #6
Blunted Sultan  topics gone triple plat - Number 1 spot x6
Props total: 49413 49 K  Slaps total: 5514 5 K



Good luck to the people trying to get their money back tho
+8   

 1 month ago '22        #7
Murderers  topics gone triple plat - Number 1 spot x9
Props total: 18327 18 K  Slaps total: 4373 4 K



That's over 250k... There are guys in the discord who said they lost 750k....
+30   

 1 month ago '18        #8
SFamilyRep  topics gone triple plat - Number 1 spot x4
Props total: 131297 131 K  Slaps total: 16056 16 K
 refuze said








He's been linked to Marcus Jordan

.
+2   

 1 month ago '05        #9
JimDinO77  topics gone triple plat - Number 1 spot x3
Props total: 43617 43 K  Slaps total: 5791 5 K
Rep gang for life mother fu*kers
+11   

 1 month ago '06        #10
Icee 
Props total: 36540 36 K  Slaps total: 2575 2 K
I’ve never heard of him until Today and OPs post
+36   

 1 month ago '17        #11
becoolhomie2  topics gone triple plat - Number 1 spot x15
Props total: 20828 20 K  Slaps total: 7242 7 K
Lol losers
+7   

 1 month ago '06        #12
whammy  topics gone triple plat - Number 1 spot x5
Props total: 33093 33 K  Slaps total: 2272 2 K
 refuze said
https://i.ibb.co/yBMJSmQ/Capture.png

I'm subscribed to his newsletter. Also have purchased a lot of shoes via his site before. You get great deals but like the article says, you don't get the shoes until 2 months after release date.

It sounded like he was running his business like a ponzi scheme. He was getting paid up front for pre-orders, but wasn't able to keep up with the demand. It's possible he lost his connections too.

This reselling sh*t runs deep
Thats what it sounded like to me and ol' buddy dissolved the company in order to hide it.


Last edited by whammy; 05-26-2022 at 10:43 AM.. Reason: Linked image to save space.
+5   

 1 month ago '08        #13
606robin 
Props total: 20321 20 K  Slaps total: 1250 1 K
Two Js kicks messed with dude if I remember right?

 1 month ago '11        #14
awww  topics gone triple plat - Number 1 spot x7
Props total: 66890 66 K  Slaps total: 47123 47 K
every since the pandemic n*ggas have been super scamming, n*gga rug pulling crypto, now they rug pulling sneaker pre orders, and n*ggas scamming on Facebook stealing people's accounts. then Indians calling people 24/7 just scam heaven in this bi*ch now
+34   

 1 month ago '21        #15
Clippers  topics gone triple plat - Number 1 spot x7
Props total: 6799 6 K  Slaps total: 2045 2 K
Yeah it sounds like he was running a pyramid scheme
+6   

 1 month ago '18        #16
Sick Flair 
Props total: 26786 26 K  Slaps total: 1916 1 K



Last edited by Sick Flair; 05-25-2022 at 10:39 PM..
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 1 month ago '04        #17
refuze  topics gone triple plat - Number 1 spot x6 OP
Props total: 55031 55 K  Slaps total: 6450 6 K


Click the tweet to read more
+14   

 1 month ago '17        #18
HH080 
Props total: 12123 12 K  Slaps total: 1028 1 K
 refuze said



I'm subscribed to his newsletter. Also have purchased a lot of shoes via his site before. You get great deals but like the article says, you don't get the shoes until 2 months after release date.

It sounded like he was running his business like a ponzi scheme. He was getting paid up front for pre-orders, but wasn't able to keep up with the demand. It's possible he lost his connections too.

This reselling sh*t runs deep
Some say he might have been mixing reps in with the real because why would he sell under retail
+12   

 1 month ago '16        #19
pnostarr  topics gone triple plat - Number 1 spot x18
Props total: 10824 10 K  Slaps total: 4327 4 K
 murderers said



That's over 250k... There are guys in the discord who said they lost 750k....
thats what those lame a*s ngas get. fuk outta here
+13   

 1 month ago '13        #20
jaytxxl 
Props total: 13953 13 K  Slaps total: 610 610
 HH080 said
Some say he might have been mixing reps in with the real because why would he sell under retail
Yep that’s what MOST of them do.. I knew a n*gga when Jordans or Yeezys would come out he’ll buy about 20-25 authentic pair and a huge shipment of UAs through his connect. No lie you couldn’t even tell the difference and he would price all them hoes the same.. If he ever ran into a n*gga that knew how to tell the difference he’ll for sure sell them the authentic but that was few far and between.. I never bought a pair of shoes from him or any seller after he put me on game. If the stores or official websites don’t have the sh*t I just don’t get it..


Last edited by jaytxxl; 05-26-2022 at 01:08 AM..
+13   

 1 month ago '21        #21
Clippers  topics gone triple plat - Number 1 spot x7
Props total: 6799 6 K  Slaps total: 2045 2 K
Selling stocks to flip sneakers is wild
+28   

 1 month ago '14        #22
westsidedon 
Props total: 13666 13 K  Slaps total: 963 963
 jaytxxl said
Yep thatís what MOST of them do.. I knew a n*gga when Jordans or Yeezys would come out heíll buy about 20-25 authentic pair and a huge shipment of UAs through his connect. No lie you couldnít even tell the difference and he would price all them hoes the same.. If he ever ran into a n*gga that knew how to tel the difference heíll for sure sell them the authentic but that was few far and between.. I never bought a pair of shoes from him or any seller after he put me on game. If the stores or official websites donít the sh*t o just donít get it..
hustler sh*t ya dig.. salute ya people gettin to that bag
+1   

 1 month ago '17        #23
LeG.O.A.T  topics gone triple plat - Number 1 spot x5
Props total: 68911 68 K  Slaps total: 44029 44 K
Well deserved. Nothing worse than sneaker head culture.
+13   

 1 month ago '05        #24
Tonero 
Props total: 12462 12 K  Slaps total: 2982 2 K
I don’t even trust , flight school , stockx , those specialty stores at the mall with the shoes vaccum sealed.

If I’m not buying my kicks from official outlets then I don’t want em.
+18   

 1 month ago '07        #25
Avon_Barksdale  topics gone triple plat - Number 1 spot x148
Props total: 296738 296 K  Slaps total: 26398 26 K
This is exactly why I never got on the hype train.

If you know my sneaker history from the gear section on here you will always see me buying other sh*t.

Although I have Jordan 1’s, a few pairs of Yeezy’s and a few more “mainstream” pairs of shoes I really fu*k with Acics Gels, NB’s, Pumas, Diadora’s, Ellese etc…

fu*k these resellers and fu*k Nike too. They are a a huge part in all of this nonsense too!



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+21   



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