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Converse 100th Anniversary special edition book

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Mission Statement

3

An Icon was Born

57 The Humble Beginning

A man, A shoe,A star.

911 The man and the star

13 Basketball shoes market leader

15 Expansion, Increased competition

17 Full-line Atheletic shoes Operation

Behind the Market Leader’s Success

1921 New and Innovative Marketing Strategies

23 Diversify into the Apparel Business

The Downfall and TheComback

2527 The Downfall

29 The Comeback

The Shoe Maker

3335 Mike Blandini and His customers

1

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ALL STAR

100

2

3

OUR SALES OVER THE PAST 26 YEARS HAVE BEEN MOSTLY TO

INDIVIDUAL CUSTOMERS. SOME ORDERS HAVE BEEN TO TEAMS, BANDS, NUMEROUS WEDDINGS, COLLEGES, NAVY SEALS, H IGH

SCHOOLS, CLOWNS, INMATES AND VARIOUS ORGANIZATIONS. ALL

WITH THE SAME GOAL , WEAR A SHOE THAT MAKES

A STATEMENT.

4

1An iconwasborn

ANICONWASBORN

They were the wings for the soaring dunks of Dr. J and were on the feet of Bill Russell and Larry Bird as they left tread marks across Boston Garden's parquet floor.They gave extra jolt to Magic Johnson and "Showtime." They were there for tennis stars Chris Evert's and Jimmy Connors' backhands at Wimbledon. And they were on stage for riffs by rock bands Led Zeppelin and Aerosmith.

From the first pair that rolled off the assembly lines in 1908, to the first pair of All Stars worn by Chuck Taylor himself in 1917, to the "Weapons" donned by Magic and Bird in the 1980s, Converse was to the athletic shoe industry what James Naismith was to basketball: a revolutionary. At one time the shoe of choice by athletes, rockers and everyman alike, America's original sneaker marks its 100th anniversary this year. It also celebrates a longevity that was unrivaled until a shift in the shoe industry in the late

1980s drove the company to the brink of extinction."You see them everywhere and anywhere," says former longtime Converse employee Mike Blandini, now 78. "The Chuck Taylor has made its mark on the world."

Marquis Converse founded the company in Malden, Mass. on February 1908. The first shoes that roll off the Converse Rubber Shoe Company were galoshes. In 1917, the company created a simple rubber-soled basketball shoe wrapped in canvas. They called it the All Star. It was the first mass-produced basketball shoe in North America, the All Star did not catch on until the mid-1920s, when a Converse sales executive and company industrial league player named Chuck Taylor got involved with Converse. Taylor's success in promoting the brand at touring clinics prompted Converse to put his signature on the shoe in 1932, and an icon was born.

7

THE HUMBLEBEGINNING

1900s

Marquis Mills Converse found the Converse Rubber Shoe Company in Malden, Mass.

Production of canvas footwear began and offered year round work to employees.

The world's first performance basketball shoe, Converse All Star sneaker, came off factory lines.

Pro Leather shoe dominated professional basketball courts.

First NCAA championship game held with both teams playing in Chuck Taylor All Star sneakers.

Support the war effort with the A6 Flying Boot and Chuck Taylor All Star sneakers worn by the U.S. Army Air Corp.

Every NBA player wore Chuck Taylor All Star sneakers.

Charles "Chuck" Taylor joined Converse, became America's first player-endorser.

Chuck Taylor's signature was added to the All Star ankle patch,the first-ever signature basketball shoe.

U.S. Men's basketball team won gold while wearing the Converse basketball shoes

Launched its "Choose Your Weapons" campaign.

Launched "Grandma-Ma" campaign with Larry Johnson.

The All Star celebrated its 75th anniversary, with 500 hundred million pairs sold globally.

Converse was purchased by Nike Inc.

Converse celebrates its 100th anniversary.

Converse launched its first apparel line with Dwyane Wade.

08151721303942497684869192030508

8

2a man, a shoe, a star.

11

A MAN A SHOEA STARDespite the major setbacks for Converse in recent

times, the Converse Chuck Taylor All-Star is the most successful shoe in history, and has enjoyed recent popularity thanks to a resurgence of old school trends. By the turn of the 21st century, over 750 million pairs have been sold worldwide.

The Converse Chuck Taylor All-Star no longer seem to be worn by their original target market of basketball players (at least not in the professional sphere) who have moved on to more modern shoes, but instead they are now marketed to the mainstream teenager. Some are so enthusiastic about the sneakers that they have a vast, ever-growing collection.

Converse Chuck Taylor All-Stars are also quite influential in pop-culture. They have been popular for decades in the American punk and indie rock scenes, and Hollywood has popularized Chucks in countless motion pictures. Since the turn of the century, especially the last 2 years, Converse have become increasingly popular, with a growing market.

Originally seen as being worn by those in to a rock music scene, the market is growing to various, younger scenes, whether it be based on a sub-culture (rock still being popular, especially with the growing emo scene) the Chuck Taylors are becoming more popular with hip hop scenes and pop music scene or even just fashion. Many Chuck Taylor owners are those who have owned the shoes in the past, and most own more than one pair, as recently many more colors are now produced than before.

All Star's rapid success was spurred by the reputation and marketing savvy of basketball star Charles 'Chuck' H. Taylor, who joined the Converse sales force in 1921 to become the brand's first player endorser.

In a town outside of Columbus, Indiana, Taylor had graduated from high school to a career in basketball. After playing for barnstorming basketball teams, including the Buffalo Germans and the Akron Firestones, Taylor joined Converse's Chicago sales office in 1921. He traveled around the country selling the shoe and promoting basketball in clinics. In 1968, a year before his death, Taylor was inducted into the Naismith Memortial Hall of Fame.

THE MAN AND

ALL STAR

1900s

12

A MAN A SHOEA STAR

The origins of Converse Inc. date back to 1908, when Marquis M. Converse founded the Converse Rubber Company in Malden, Massachusetts with a capital investment of $250,000. Converse had gained extensive retail experience as a general manager in one of Boston's largest department stores and at Beacon Falls Rubber Shoe Co. He started his own firm after Beacon was absorbed by U.S. Rubber and within a year of its founding, the Converse Rubber Company had 350 employees into a full-production team in a new plant. By 1910, the company had expanded its plant to produce 4,000 pairs of boots and rubbers daily.

The young company experienced a dramatic increase in sales after its 1917 introduction of the Converse canvas All Star, one of the world's first basketball shoes. The game of basketball was then in its infancy, having been invented by James Naismith in 1891 at the International Young Men's Christian Association Training School.

The original Converse Rubber Company soared beyond the scope of its 1908 designs until 1929 when it fell into bankruptcy. Control of the company then passed on to Mitchell B. Kaufman, who had been president of Hodgman Rubber Company since 1925. After Kaufman's untimely death a year later, his

successor, Albert Wechsler, operated the company for the Kaufman estate until 1933, when a depressed economy and reduced profits prompted yet another change in command.

The 1933 purchase of the company by the Stone family began a 39-year period of family ownership which during that time, Converse became a leader in the shoe industry. After providing protective footwear, special-purpose boots, parkas, and other equipment for the American Armed Services during the World War II, the Stones concentrated on rapid growth and production in a civilian market. In 1946 the company's Granite State Division in New Hampshire began operating two large plants.

In 1953 Converse established the Coastal Footwear Corporation in Canovanas, Puerto Rico. Converse brand lines were further expanded with the 1961 acquisition of the Tyer Rubber Company and the 1964 acquisition of the Hodgman brand of sporting goods equipment. The company also opened a new factory in Presque Isle, Maine in 1967 and purchased the Bristol manufacturing company in Rhode Island in 1969.

BASKETBALLSHOES MARKETLEADER1900s

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14

“within three years, it [would] be a leader in the distribution of athletic�footwear�in Japan,” according to company president John P. O'Neil.

A MAN A SHOEA STAR

15

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By the early 1970s, Converse had diversified beyond footwear to provide numerous industries--textile, plastic, automotive, paper, paper converting, photocopying, and leather processing--with products ranging from hockey pucks to teethguards, sports and industrial boots, and rubber compounds for specific applications. Sales were delegated to three separate divisions: Sporting Goods,Footwear, and Industrial.

The Stone family dynasty ended its reign in 1972, when Converse was purchased by the Eltra Corporation. That same year, thefootwear division of B.F. Goodrich Co. was acquired, adding a modern manufacturing plant in Lumberton, North Carolina and a large distribution center in Charlotte, North Carolina, which remained the hub for Converse distribution as the company continued to expand.

By the late 1970s, factors, including increased foreign competition, soaring labor and overhead costs, and a weak domestic economy, forced the company to pare down operations, consolidate, and increase efficiency. The Hodgman line was sold, and the Malden and Andover plants were closed, followed by the Granite State Division. Sales divisions, which had traditionally been divided between sporting goods and footwear, were consolidated into one team.

Converse changed hands once again in 1979. Under the ownership of Allied Corporation, the brand would achieve unprecedented sales and profits. In 1982, however, the giant chemical conglomerate underwent a restructuring and moved out of the consumer products business. Although Converse produced 12 million pairs

of sports shoes a year and had become the leader in basketballfootwear, Allied put the company up for sale.

Through the combined efforts of a group of senior managers, Converse spun off from its parent to become a privately owned and operated entity. The group which is led by Richard B. Loynd, president of Allied's Eltra Corporation, of which Converse was part of, and John P. O'Neil, Converse president, negotiated the purchase of the Converse division from Allied for approximately $100 million. By 1983, Converse stock was available on the NASDAQ national market.

Facing the growing pressure of foreign imports, Converse moved to develop its export business to international markets. In 1984 the company signed separate agreements with Moon-Star Chemical Corp., Mizuno Corp., and Zett Corp. to handle the manufacture, distribution, and sale of Converse footwear in Japan. With the opening of an office and warehouse in Osaka in 1984 and plans to develop new shoes specifically for the Japanese market, Converse anticipated that 'within three years, it [would] be a leader in the distribution of athletic footwear in Japan,' according to company president John P. O'Neil.

Between 1987 and 1988, Converse's international business increased by more than 60 percent. One driving force behind such growth was the building of direct company operations in key European, Asian, and North American locations, in addition to licensed distributors in more than 90 countries worldwide.

EXPANSION,INCREASED

COMPETITION

1970s

16

17

A MAN A SHOEA STAR

Converse also faced competition from other domestic shoe companies. Since the early 1970s, the introduction of high-performance, leather athletic shoes strained Converse's leading position with its simple, canvas classic. By January 1986, the New York Timesreported that 'Nike of Beaverton, Ore., maker of Air Jordan basketball shoes, appears to be outrunning competitors such as Reebok, Converse and Hyde Athletic Industries.

Consequently, Converse diversified to become a full-line athletic shoe operation. By the mid-1980s, Converse running shoes had become a popular item. Sales of tennis shoes, including the popular Jimmy Connors leather model, increased 400 percent in 1983 alone. By the 1990s, the Converse brand was associated not only with the famous Chuck Taylor All Star line, but with other fashion canvas shoes and footwear for all major sports played by all ages.

To ensure the continuation of the development of innovative and well-designed footwear, Converse invested in an advanced technologies lab staffed by a 70-member research and development team. Upon its completion in the early 1980s, it was one of only two in-house, biomechanical footwear labs in the country. The facility included work stations equipped with powerful computers, robots and testing systems.

In addition to designing the most effective shoes possible, Converse enhanced its reputation by sponsoring major basketball organizations and events worldwide. Converse was the first company named the official shoe of the National Basketball Association. Valid from 1995, its contract granted the company

permission to use the NBA name in all advertising and promotions and to manufacture shoes with logos of NBA teams or other affiliations.

Converse also supplied merchandise to cheerleaders and ball retrievers throughout the league.Converse was also a sponsor of USA Basketball beginning with its inception in 1975. The Colorado Springs-based group was responsible for selecting national teams to represent the country in various international competitions and served as a class A member of the United States Olympic Committee.

After 1977, Converse was contracted as the official shoe of USA Basketball, which agreed to 'use its best efforts to outfit players in Converse shoes,' according to Jeffrey Orridge, assistant executive director for corporate and legal affairs for the sports group, in a September 1992 article in The American Lawyer. That agreement later caused legal conflicts, as USA Basketball team members including Michael Jordan held contracts with competing shoe companies such as Nike. Requiring players to wear Converse shoes introduced ethical and legal problems that had to be carefully resolved.

With the globalization of basketball, Converse increased its overseas contacts. In 1988 the company signed a sponsorship for the World Association of Basketball Coaches (WABC), located in Rome, Italy, and responsible for more than 50 clinics worldwide.

In February 1990, the company began a five-year, seven-figure contract as the sponsor of the Federation Internationale de Basketball (FIBA). Founded in 1932

FULL-LINEATHELETIC

SHOESOPERATION1980s

18

Internationale de Basketball (FIBA). Founded in 1932 and based in Munich, Germany, FIBA included 176 member countries and approximately 119 million registered players. Its competitions included the European Championship Club Cup Final and the European Championship for both men and women.

Converse also made a presence at the Olympic Games. Though the company had provided Olympic footwear every year since 1936, in 1984 it became the first footwear supplier ever chosen to officially represent the games. The honor was not cheap: Converse paid the Los Angeles Olympic Organizing Committee (LAOCC) $4 million and spent an additional $3.5 million for national television advertising. Total promotional costs approached the $10 million mark.

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By the 1990s, the Converse brand was associated not only with the famous Chuck Taylor All Star line, but with other fashion canvas shoes and footwear for all major sports played by all age groups.

Behind themarket leader’s

success

Behind themarket leader’s

success

3

BEHIND THE MARKET LEADER’S

SUCCESS199019901990199019901990199019901990199019901990199019901990199019901990199019

Ever since Chuck Taylor served as its first player endorser, Converse has continued to promote its footwear through high-profile sports celebrities and athletes. By 1990, the brand had contracted endorsements with more than 14 pros representing 11 different teams across the United States. In addition, company statistics showed that 21 percent of all professional basketball players wore Converse shoes.

In the case of basketball endorser Earvin 'Magic' Johnson, Converse received more publicity than it may have bargained for. In 1979 Johnson was enlisted as an official company endorser until 1994. By the late 1980s, Johnson showed dissatisfaction with the deal, which placed him in the top income echelon of Converse endorsers, but yielded less than those of other top endorsers with other leading brands. After Converse filed suit against the player for failing to comply with his long-term endorsement contract in 1987, matters were resolved temporarily.

When Johnson won the NBA's most valuable player award, Converse created a 30-second highlight piece of his best moves in the NBA tournament filmed in slow motion to the accompaniment of 'Amazing Grace.' In 1990 the brand allotted a quarter of its $40 million advertising campaign to launch its Magic Johnson footwear and apparel line. After the player announced that he had tested HIV positive in the winter of 1991, Converse aired a $1 million public service campaign called 'Magic's Athletes Against AIDS.'

NEW ANDINNOVATIVE MARKETING STRATEGIES1990s

21

BEHIND THE MARKET LEADER’S

SUCCESSYet, in 1992 old friction resumed with Johnson's public statements that Converse marketing was outdated and that he was terminating his contract before the official date. 'Converse as a company is stuck in the '60s and '70s. They think that the Chuck Taylor sneaker days are still here,' Johnson told reporters in Monte Carlo after the U.S. basketball team practiced for the Olympics. 'I've been trying to get out for years.' Despite Johnson's criticism, Converse moved into the late 1980s and early 1990s with new and innovative marketing strategies aimed at regaining market share.

In 1985 the brand paired two rival coaches--Denny Crum from the University of Louisville Cardinals and Joe B. Hall of the University of Kentucky Wildcats--on one poster to promote the Converse brand. Other promotional strategies included free trial shoes at the 1985 Sports & Runners Expo in Boston; environmental sponsorship of the Windstar Foundation of Snowmass, Colorado; and sponsorship of the Hoop-It-Up three-on-three basketball tour, bringing the game of American streetball to 13 European cities and to youth groups at home.

In the late 1980s, Converse stressed advertising and promotional campaigns to compete with such brands as Nike, Reebok, L.A. Gear, and Keds. Even under the financial strain of its bankrupt parent, Converse garnered an effective creative team at its New York agency, Ingalls Quinn and Johnson, which developed a hit campaign featuring NBA Rookie of the Year Larry

Johnson dressed up as his basketball-playing 'grandmama.' In her new, light Converses, the ad proclaimed, grandmama could blow by you 'faster than a passing thought. She'll eat point guards for lunch and pick her teeth with a power forward.'

In October 1986, Converse was acquired by Interco Incorporated, a broad-based manufacturer and retailer of consumer products and services primarily in the areas of footwear and furniture products. Citing doubt regarding Interco's future profitability, Standard & Poor's placed the company on CreditWatch. Nevertheless, Converse announced record sales for fiscal 1987, breaking the $315 million barrier and with a 36 percent increase over 1986.

In January 1991, however, Standard & Poor's doubts proved justified. Interco filed for relief under Chapter 11 of the federal bankruptcy laws. Until it emerged from bankruptcy proceedings in the autumn of 1992, support for rapidly slipping Converse brands was limited to a dangerously low budget. Apollo Investment Fund, led by former Drexel Burnham Lambert dealmaker Leon Black, wound up with 60 percent of the company's stock.

22

Diversification followed for the once-again independent company. In 1995 it entered into a licensing deal with Shalom Children's Wear to manufacture infants' and toddlers' sporting goods apparel. It also purchased Apex One Inc., a designer and marketer of sports-related footwear and apparel that also made products under license with professional sports teams, leagues, and institutions of higher education.

Following the acquisition of Apex, Converse launched an 'integrated head-to-toe apparel program' of coordinated outfits bearing the colors of top college teams. The universities of Arkansas and Kentucky were the first to take to the court in Converse garb and matching sneakers. But the second half of 1995 unfolded in a fiasco for Converse, with layoffs, leaky shoes, and trouble at its new subsidiary.

In June, it announced the cutback of 200 jobs at its Lumberton plant. In August, 85 days after its Apex One acquisition, it decided to close down that business given unexpectedly slow orders and high costs in the face ofa soft apparel market. In fact, Apex, which had long had trouble making orders, no longer had the trust of most retailers, despite its affiliation with Converse. Converse eventually won $25.6 million in settlement for misrepresentation.

DIVERSIFYINTO THEAPPAREL

BUSINESS

1995

BEHIND THE MARKET LEADER’SSUCCESS23

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built into the heel to absorb shock and provide additional maneuvering control. After some critics objected to the shoe's name as too violent, Converse changed it to Run `N' Slam.

Houston designed a 30-second television spot featuring Kevin 'KJ' Johnson of the Phoenix Suns, with music by pop group En Vogue. The spots targeted cable channels such as the Black Entertainment Network and MTV. In another 1993 award-winning campaign for the new AeroJam shoe, the agency again played off Larry Johnson's 'grandmama' theme. While grandmama performed staggering jumps and dunks in her AeroJams, Johnson narrated: 'There was an old lady who lived in a shoe. And that shoe let her do things that no man could do.'

These and other aggressive promotional programs began to pay off for Interco's shoe business. Footwear group sales by Florsheim and Converse for the second quarter of 1993 were $162.1 million compared with $146.2 million in the same period of the previous year. In 1994, however, despite record revenues of $437 million, increased profits of $17.6 million, and the success of Converse's Jack Purcell racquet sports shoe,

But the episode hurt Converse, which was having financial troubles of its own--an operating loss of $8.4 million in the second quarter--and in September, it moved to indefinitely suspend operations at its Mission, Texas factory. In October and November, it laid off two more rounds of employees, and in December, just when it looked as if Converse was getting back on track with the decision to eliminate its outdoor, running, walking, tennis, and football product lines.

Its RAW Energy and RAW power basketball shoes literally sprang a leak in the market, and the company was faced with the embarrassment and recall of 400,000 pairs of shoes. By year's end, Converse posted a loss of $71.7 million, compared with profits of $17.6 million in 1994. Interco's 1992 financial restructuring, however, freed up new funds for Converse investments and marketing plans.

In June of that year, Converse's advertising team at Ingalls startled Madison Avenue by pulling up stakes and moving across town to Houston, Effler & Partners Inc. The $25 million Converse account followed along one day later. Houston took off with a new generation of ads to sell new shoes. In 1993 Converse introduced its Run `N' Gun, featuring a patented React cushioning device with a combination of gas and gel

1995

24

THE DOWNFALLAND COMEBACK

THE DOWNFALLAND COMEBACK

4

THE DOWNFALLAND COMEBACK

THEDOWNFALLAND THECOMEBACK

Converse slipped to sixth place in its industry, posting a $5 million loss despite record sales of $450 million and an increase in revenues, while throughout the sector inventories bloated and sales showed signs of going flat. In early 1998, Converse cut more jobs and changed its marketing strategy, instituting its new 'Stay true' campaign, designed to appeal to 12 to 18-year-old athletes and featuring younger players at the start of their careers. The campaign was at least in part a reaction to the embarrassment brought upon the company by Rodman and Sprewell, whose behavior on and off court was no longer something with which the company wanted to be associated. The company also continued to promote its athletic originals, its Chuck Taylor and Jack Purcell shoes.Converse continued to struggle throughout 1998, at which point it moved to reduce its heavy reliance on its basketball category and to institute other footwear categories, such as men's and women's athletic originals and action sports. Rupp's goals for the year included marketing the retro look, expanding the supply of children's lines, pursuing a larger share of women's and girl's athletic shoes, and garnering a portion of sales in its new action sports category--gear for boarding and eco-training. Still the company's market share slipped further, from 3.6 percent in 1997 to 2.3 percent in 1998, and revenues for the year dropped 30 percent to $308 million despite an increase in action sports sales.

Unfortunately,by the end of 1997, people had shifted from wearing basketball sneakers and other athletic shoes to what the industry called the 'brown shoes'- work boots, hiking shoes, and casual footwear in brown or black.

THE DOWNFALL

1998

27

THE DOWNFALLAND COMEBACK

THEDOWNFALLAND THECOMEBACK

Unfortunately,by the end of 1997, people had shifted from wearing basketball sneakers and other athletic shoes to what the industry called the 'brown shoes'- work boots, hiking shoes, and casual footwear in brown or black.

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THEDOWNFALLAND THECOMEBACK

THEDOWNFALLAND THECOMEBACK

Fortunately,

began selling at a rapid clip in 1999. In the wake of this success, Converse made plans to market the Dr. J 2000 basketball shoe and the All Star 91, or Dennis Rodman shoe, in spring 1997 in time for the NBA's 50th anniversary. The company entered into deals with Rodman, Latrell Sprewell, Larry Johnson, and ABL star Theresa Edwards (40 percent of Chuck Taylor high tops were purchased by women) to help market its updated old shoe designs. In addition, Converse initiated a licensing agreement with A4 of Los Angeles to produce its Star 91 line of apparel and footwear, as well as two other men's apparel lines. The idea was to leverage the company's history as a long-time staple among professional athletes and to play up the emotional ties people had to the Converse brand. The company's strategy for 1999 was likewise broad. With sales outside of the United States now close to 50 percent of net revenues, Converse formed Converse Canada and assigned the new division exclusive distribution and license rights for footwear, apparel, hats, and bags in Canada.

'retro' was in, and the company undertook its biggest campaign ever aimed at recapturing the glory of its past. Its All Star 2000, a leatherized update of its traditional basketball shoes featuring an old fashioned Chuck Taylor All Star patch,

THE COMEBACK

1999

29

THEDOWNFALLAND THECOMEBACK

THEDOWNFALLAND THECOMEBACK

Fortunately,'retro' was in, and the company undertook its biggest campaign ever aimed at recapturing the glory of its past. Its All Star 2000, a leatherized update of its traditional basketball shoes featuring an old fashioned Chuck Taylor All Star patch,

30

23.219.3 14.8

17.221.5 23.7 25.8

26.2

32.434.4

38.7

VA

LU

E (%

)

2001 SALES

THEDOWNFALLAND THECOMEBACK

31

It also continued to promote its athletic originals in Japan, where they were a huge success, and its skate casual shoes in Europe. Back home, it instituted a new approach to its children's product market, focusing on colorful and imaginative footwear designed specifically for children and partnering with OddzOn, Inc., marketers of Koosh sports toys. It also introduced a women's line of athletic originals in the spring of 1999.

Drawing upon the fruits of the $6.5 million, $8.8 million, and $7.7 million it spent on research and development in 1996, 1997, and 1998, respectively, Converse introduced a new shoe technology in 1999: He:01, a helium gas-cushioned shoe and the company's first technological innovation since the early 1990s. To better market its products, it partnered with pro basketball hopeful and recording artist, Master P, on a line of sneakers to complement its joint No Limit apparel, the All Star MP.

Converse also signed a licensing agreement with Genender International design to manufacture and market a line of Converse clocks and watches. In this way, despite the ongoing layoffs and losses that continued to plague Converse into the first half 1999, the company aimed to position itself to take advantage of the anticipated improvement in industry conditions.

Nike has left the Converse brand untouched for the most part and it has been resurgent in recent years. Profits reportedly rose to about $205 million in 2003 and though Nike would not release current figures, one of its chief executives told market analysts that Converse's 2007 revenues increased 23 percent and are up 40 percent during the second quarter of 2008.

Converse Global Creative Director Scott Patt , who previously designed for Nike for eight years, said there will always be a place for Converse. "The industry changes, but our foundation and center around the originals and rebels who have chosen Converse as part of their lives within music, art, sports and fashion never changes," he said.

Converse enters its second century with athletes like the Miami Heat's Dwyane Wade and rapper Common as spokesmen. Even if it might be a little much for the man behind the original Converse star. "Somebody said Chuck Taylor would roll over in his grave if he saw some of the colors and models of the Chuck Taylor shoes today," Peterson said. "People in my generation are traditionalists and tend to wear the core models and colors. But that's one reason for their continued popularity. No matter what your age is, a true chucks fan will never stop wearing them."

The real appeal for Converse today is its retro coolness. "It's still continuing to be popular as every new generation discovers them," Peterson said.

THEDOWNFALLAND THECOMEBACK

32

THE SHOE MAKER

THE SHOE MAKER

5

THE SHOEMAKERConverse maker worked closely with the stars wearing All-Stars in brand's glory days. It has been more than 40 years since Mike Blandini first stepped inside the Converse Rubber Shoe Company in Malden, Mass., working the line for America's original athletic shoe.

Even though some details are not as sharp as they once were, the list of icons he personally helped make shoes for during his 49-year tenure still rolls off his tongue as a virtual who's who of sports and entertainment. Blandini was one of the chief pattern-makers in research and development later in his career. In that role, he handled special makes for nearly all of the company's top spokespeople and got a free tour that featured a front-row seat for the 1984 Olympics.

Blandini also helped create models for field shoes, runners and baseball cleats. His products also made their way to several famous musicians. “Larry Bird, Magic Johnson, Kevin McHale, Dr. J (Julius Erving), all those big players,” Blandini said. “We also made for rock bands. Led Zeppelin, Aerosmith, U2, Pearl Jam.There were just so many. They used to come down to the facility to see how we made shoes for them. Special canvas All-Stars, knee highs, you name it.”

"I made shoes for them personally. I made casts of their feet and figured out where their problems were. Larry Bird had bone spurs on his Achilles' tendon, and I had to accommodate for his pain. I had to make a special

cast for him and figure out where the bone spurs were and accommodate for any pain. “If he had any pain, I was in trouble. There was never a dull moment.”

Blandini also made shoes for Converse's chief tennis stars, Jimmy Connors and Chris Evert. The challenge of making Connors' shoes, he said, was more logistical than anatomical. He also would log quite a few sky miles while accommodating Connors' shoe needs.

“[Connors] destroyed a pair of shoes a day,” Blandini said. "I had to compensate for his toe because he dragged his right foot. His mother insisted on having 24 pairs on hand. When he got to Wimbledon, she wanted them hand delivered, so a lot of times I had to meet them at the airport in Missouri, find out what problem he was having and go back [to Malden]. Stuff like that was challenging but is what made it fun.”

Another of Blandini's favorite clients was Erving of ABA and NBA fame. Of all the stars he worked with, Blandini said Erving was the most personable. “We had to make 100 pairs a year for him,” Blandini said.

"After every game, he would sign a shoe and give it away to a fan. He was a true gentleman and the best guy ever. We got to be good friends. I sat in the 1984 Olympics with him, and he never stopped being a nice guy. He just sat there signing autographs for like three hours one night. Those were some great times.”

MIKEBLANDINI

“We also made quite a few for rock bands. Led Zeppelin, Aerosmith, U2, Pearl Jam.There were just so many. They used to come down to the facility to see how we made shoes for them. Special canvas All-Stars, knee highs, you name it.”

AND HIS CUSTOMERS

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“We also made quite a few for rock bands. Led Zeppelin, Aerosmith, U2, Pearl Jam.There were just so many. They used to come down to the facility to see how we made shoes for them. Special canvas All-Stars, knee highs, you name it.”

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