Soleply built a sneaker resale chain in 4 years — high-interest debt bankrupted it

Soleply was founded in January 2021 by Thomas Yoder and Dustin Billow, two longtime sneaker enthusiasts who had been reselling since high school. The company started as an online venture selling streetwear and in-demand sneakers from brands including Yeezy, Asics, Nike, Jordan, and New Balance. The online business proved profitable, and the founders quickly expanded into physical retail, opening six stores in high-traffic malls across four states within three years.

The rapid store expansion was funded with high-interest, short-term debt. While the stores generated revenue — hitting $10.4 million in 2023 — the debt payments created a vicious cycle. Revenue was diverted toward loan payments instead of inventory, causing stock shortages that hurt sales, which then required more borrowing. By 2024, revenue had fallen to $8.8 million, and the company could not renegotiate its lease terms or debt obligations. Several landlords threatened legal action over terminated leases.

On March 21, 2025, Soleply filed for Chapter 11 under the Subchapter V small-business provision. The company closed four of its six stores — in Pennsylvania, Maryland, Connecticut, and Delaware — and sought to exit leases at three more locations. It hoped to restructure its debts, shed unmanageable lease obligations, and emerge as a leaner business focused on its strongest-performing store in Cherry Hill, New Jersey.