Arizona officials have announced plans to withdraw the state's previously promised $1 million incentive for Nike for its planned factory in Goodyear. The move came after Nike received nationwide criticism for its plans to release a new sneaker model that featured a colonial-era version of the American flag.

The world's largest sportswear manufacturer and distributor received criticism on social media for its plans to released a new version of the Air Max 1 sneaker ahead of the fourth of July holidays. The particular sneaker was set to feature a version of the American flag that only had 13 stars. The flag, which is more popularly known as the "Betsy Ross flag," represented the time when the US only had a handful of colonies.

NFL quarterback and Nike spokesman Colin Kaepernick immediately reacted on social media after finding out about the new sneaker's design. The quarterback urged Nike not to sell the shoe as it contained symbolism that he and others found offensive because of its connection to a time of slavery.

Kaepernick was one of Nike's biggest endorsers last year. He was the face of the 30th anniversary of the company's famous slogan, "Just Do It." Following the flood of criticism on social media, Nike immediately recalled the new sneaker models off its shelves.

Arizona Governor Doug Ducey mentioned in a statement that he was very much disappointed in Nike's "terrible decision." The Republican official further pointed out that he was very much embarrassed at what the company had done. Ducey mentioned in a post on social media that Nike was wrong in its intended celebration of the country's history and of its independence.

Ducey was joined by other conservatives in expressing their disappointment in Nike's decision. Ducey also announced that he has ordered the state's commerce authority to withdraw its planned financial incentives. Prior to the scandal, Nike was promised up to $1 million in incentives for its planned $185 million facilities to be built in Goodyear, Arizona. The facility was set to employ more than 500 people.

In response to the criticism, Nike officially released a statement to explain its decision in recalling its new product. Nike explained that the decision to halt the distribution of the new Air Max 1 Quick Strike Fourth of July model was based on how it could unintentionally offend people and how it could detract from the purpose of the patriotic holiday.

Apart from Nike, other brands such as the Beaverton and Prada were recent subjects of criticism for decisions that were deemed racially insensitive. Prada was forced to pull its products last December, following criticism over its ads depicting blacked faces.