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There were a number of theories as to how Malekzadeh managed to get his hands on the exclusive sneakers.

Common theories included a close connection with an insider at Nike or ties with smaller retailers and boutiques, but no concrete explanation emerged.

Despite the unexplained history of where the shoes came from, the ones that did arrive were completely authentic and passed third-party authentication services on StockX and GOAT.

Then the business model came crashing down. On May 19, Malekzadeh pulled the plug on his business, petitioning to voluntarily dissolve the LLC, and scrubbed himself from social media.

In the court filing announcing the dissolution of Zadeh Kicks, the company states that the company “experienced exponential growth in business” from January 2020 to May 2022, primarily due to preorders, and it was unable to keep up with the rapid growth due to inadequate “internal systems and processes.”

The news of the dissolution spread like wildfire on social media, with hundreds of Zadeh Kicks customers coming forward to share stories of losing six figures sums as the company pulled out of the market.

Due to Zadeh Kicks’ unique business model where buyers would preorder shoes months in advance and would receive store credit for missed orders, customers who bought Zadeh Kicks shoes before the company’s dissolution are unlikely to recoup their losses.

Government kicks
Federal prosecutors eventually charged Malekzadeh with swindling $70 million out of customers and falsifying loan applications for more than $15 million in bank financing, to which Malekzadeh has pleaded not guilty.

But now comes the task of offloading the excess stock from the dissolved company.