Outdoor Voices raised $57M to be the next Lululemon — then imploded

Outdoor Voices was founded in 2013 by Tyler Haney in New York City, selling minimalist athleisure — leggings, sports bras and apparel — through a direct-to-consumer online model and a growing chain of branded stores. The brand's 'Doing Things' ethos and clean aesthetic caught the cultural moment, and investors poured in: GV, General Catalyst and Forerunner Ventures led rounds that totalled roughly $57 million. By 2018 the company was valued at $110 million and was widely described as the next Lululemon.

The collapse was driven by management dysfunction. In 2017, Mickey Drexler — former CEO of Gap and J.Crew — became chairman. The pairing of a veteran executive with a young founder was volatile. Haney struggled to work with Drexler, and the board grew impatient with its failure to reach profitability. In February 2020, Haney was forced out as CEO. The New York Times published a story, 'The Implosion of Outdoor Voices,' detailing a toxic culture and a company that had burned through venture capital without building a sustainable business. By January 2020 the valuation had fallen to $40 million.

The company never recovered. Consortium Brand Partners acquired Outdoor Voices in 2023 for an undisclosed sum — effectively a distress sale. In March 2024, the company announced it would close all its stores and become online-only. Former employees confirmed it was preparing to file for Chapter 11 bankruptcy. The brand that had been anointed the future of athleisure was reduced to a website and a footnote — a cautionary tale of what happens when a VC-funded startup confuses cultural buzz with a business model.