The loss of market share, combined with poor business decisions, forced Converse to file for bankruptcy on January 22, 2001. In April 2001, Footwear Acquisitions, led by Mardsen Cason and Bill Simon, purchased the brand from bankruptcy and added industry partners Jack Boys, Jim Stroesser, Lisa Kempa, and David Maddocks to lead the turnaround of America's Original Sports Company.
On 9 July 2003 Nike paid US$309 million to acquire Converse.
Nike approached the 1980s revival around 2005 to relaunch the footwear of choice of that decade, and the "Chucks" quickly became a cultural phenomenon once again. As a result, Nike expanded the Converse brand to other businesses apart from shoes, much akin to its other brands.