Hilma sneaker brand ceases operations amid inventory crisis and tight capital markets
The abrupt shutdown of Hilma underscores the structural difficulties for niche competitors in a flat market dominated by Nike, with only limited inventory remaining at select retailers.
Hilma, a sneaker brand specialising in footwear for women, has abruptly ceased operations, confirming the end of its market presence. Founder and CEO Brooke Torres communicated the closure to Retail Dive, stating the brand had “reached the end of the road.” The company has sold through its online inventory, although limited stock remains available at retailers REI and Sierra. The brand’s website remains active but is no longer processing orders.
Torres attributed the shutdown to a combination of operational and financial pressures. She cited an unrecoverable inventory issue that was unrelated to overall product demand as the primary operational cause. Compounding this challenge was a tightening venture capital environment; Torres noted that only 2.2% of capital in a recent year was directed towards women-founded businesses, leaving the company with no viable path forward despite exploring all options.
The closure highlights the intense competitive landscape facing smaller players. According to Statista data, the global sneaker market is highly concentrated, with Nike remaining the most popular brand in the U.S., followed by New Balance and Adidas. The “Other” category, which includes Hilma alongside brands such as Tracksmith, Bandit, NOBULL, and APL, represents only 5% to 10% of the market. This share is further splintered across dozens of small direct-to-consumer brands.
GlobalData Managing Director Neil Saunders observed that Nike’s massive size hampers its ability to push out great product and storytelling compared to niche competitors. Brands like On and Hoka have successfully grown sales by focusing on performance and niche areas such as road running. Hilma had utilised mass personalisation technology and virtual fitting experiences to offer sustainable and customisable footwear, aiming to meet specific consumer needs that broader market leaders might miss.
Overall footwear sales were essentially flat in 2025, though specific categories showed growth. Running-inspired shoes drove a 3% increase in dollar sales within the sport lifestyle segment, while the performance category saw dollar sales of running and cross-training shoes rise by 7%. Walking shoes experienced double-digit increases in both dollar and unit sales. Hilma, which raised $3 million in 2019 according to CB Insights data, operated in this environment where room for error is minimal for niche competitors.
