Puma’s Footwear division has been in a tailspin since it was acquired by Japanese footwear giant YKK for $9 billion in 2010.
In the past three years, Puma has seen its footwear business slide into a slump, but that trend has only worsened over the past year.
In 2015, Pumas footwear business saw a net loss of $2.2 billion, and the company was forced to lay off more than 8,500 employees as part of a $1 billion restructuring.
Puma Footware has been struggling since then.
In a recent interview with ESPN, CEO and founder Krishnan Guru-Murthy talked about the challenges facing the footwear business, saying, “When we look at the overall shoe business, I feel that the majority of shoes are worn on the foot, whereas the majority are worn by people who are walking.”
Guru-Murth told ESPN that in the last three years Puma lost $7.5 billion in revenue.
That’s not all the problems that the footwear company has faced.
In May, it was announced that Pumapak, which has a similar brand to Puma, was pulling its shoes and boots from store shelves.
This is just the latest setback for the Puma brand.
Last month, Pempas footwear division was hit with a $3 billion lawsuit filed by an employee over unpaid overtime.
The lawsuit alleges that the company has failed to pay overtime for 40 employees, with only a few being paid in full.
Puma declined to comment on the allegations.
Gurugram Pempora has been dealing with some tough times recently.
In March, Pema’s footwear company was hit by a fire at its warehouse, which was set by disgruntled employees who had complained about poor working conditions.
A month later, Pramas footwear division suffered another major setback when a Puma employee claimed that Pemas shoes had to be returned because they were in poor condition.
Last year, the company experienced another huge loss, with its footwear unit selling out of more than 5,500 pairs of Pumamis shoes.
On Monday, Pems shoes were sold out of its entire collection at the store.
“We have seen some big fluctuations in our business in the past few years,” Guru-Nagar said in the ESPN interview.
“The trends that we saw in the previous decade, that is when we started to grow, are now fading.
And I feel like it is a good time to revisit our strategy and take stock of the trends that have happened over the last decade.”
Pempas is currently seeking a buyer for its footwear division.
According to Pempa’s chief financial officer, Peeja Singh, Pusas is seeking a price that will bring the company back into business, but it’s unclear how much the company is willing to pay.
When asked about what he hopes to achieve by selling off its footwear, Singh said, “I think it will bring back some stability to our business.”