Sneaker resellers try to sell the latest models even before they hit retail shelves.

A large sneaker reseller in Eugene has collapsed owing millions of dollars to customers.

A Lane County Circuit Court judge shut down Zadeh Kicks on May 19 and installed a receiver to take charge of the company’s remains. Court documents and Eugene Police officials said the FBI has launched a criminal investigation, trying to figure out what happened to the enormous sum of customers’ money that has gone missing.

Neither court records or the receiver said exactly how much money the company owes its customers and vendors.

Zadeh Kicks’ struggles came to the attention of law enforcement after founder Michael Malekzadeh called the Eugene Police Department asking for police protection.

Malekzadeh was apparently afraid for the safety of his family after a number of furious customers showed up at the Zadeh Kicks warehouse in an industrial section of West Eugene demanding their money back. The Eugene Police Department police log indicates that Malekzadeh called for help four different times. On one of the calls, an officer asked for backup after reports of a shot fired.

Department spokesperson Melinda McLaughln referred inquiries to the FBI. “It’s their case,” she said.

Zadeh Kicks was a sneaker reseller – a niche of sneaker industry middleman that has arisen to serve the legion of Sneakerheads, enthusiasts and collectors who pay thousands of dollars for the most desired models. Successful resellers source the hottest new models from the likes of Nike and Adidas.

Zadeh Kicks’ collapse generated a huge outcry on social media. Customers lamented they were out thousands of dollars. Pictures of his children and Malekzadeh’s house in Southwest Eugene appeared on the Web.

It was not a government agency or creditor that requested the receivership. It was Malekzadeh himself asking the court to dissolve his company and appoint an independent third party to take charge. The court appointed David Stapleton to serve as the receiver. He will marshall the company’s remaining resources in hopes of repaying the creditors some percentage of what they’re owed.

“It is unquestionable that Zadeh Kicks is insolvent,” a lawyer for Stapleton said in court documents. The company’s “liabilities greatly exceed its assets. Preliminary estimates put the deficit at millions of dollars.”

In an email to Zadeh Kicks’ customers, Stapleton said he’s been inundated with phone calls from customers, creditors and others.

The process of reviewing the Zadeh Kicks business will likely take some time. Eventually, Stapleton wrote in court filings that he intends to revive the zadehkicks.com website and use it to keep creditors up to date.

Stapleton said in an email that he “is cooperating with the federal government in a criminal investigation” and suggested that people who felt they’d been victimized by the sneaker reseller call the FBI.

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