CoolKicks LA Owner Arrested on Felony Charge After LAPD Raid

5:27 PM PT -- A rep for CoolKicks tells TMZ ... "Yesterday, the LAPD impounded a small allotment of Nike sneakers that Coolkicks purchased and received within the last 48 hours, alleging that the merchandise was stolen. This news came as a complete shock to our entire team. Neither Coolkicks leadership, nor our staff, had any knowledge or reason to believe that these products were stolen. We entered into this purchase in good faith, as we always have, committed to running an honest business built on integrity and trust."

The statement continued ... "It is important to clarify: there have been no allegations whatsoever from law enforcement that any of the products were counterfeit. Coolkicks takes pride in serving our loyal community with authentic, high-quality products and service; it is at the heart of our culture. We want to reassure our community that the integrity of our products remains our highest priority. We are confident the truth will come out, and the trust we have worked so hard to earn will remain strong. We deeply regret the concern and inconvenience this situation may have caused. Coolkicks has always stood for honest business, and that commitment will never change."

The owner of CoolKicks LA -- the celeb-loved sneaker shop -- was arrested on a felony charge after he was caught up in an LAPD raid that was allegedly captured on a livestream.

Law enforcement tells TMZ Sports ... Adeel Shams, 33, was arrested around 4:45 PM on Thursday in Santa Monica and was booked on a felony charge of "Receiving Known Stolen Property over $950.00."

Shams is scheduled to appear at Los Angeles Superior Court on October 23. No further information was provided at this time.

The beginning of the raid was apparently caught on Shams' stream on the Whatnot app -- he was auctioning off items before abruptly saying, "What the f*** was that?"

Shams then questioned whether he was the target of a "swatting" prank before shutting off the stream.

An alleged image of the raid is also circulating on social media.

CoolKicks is widely considered one of the most popular resellers for sneakers, rivaling major players like GOAT, StockX and Flight Club.

Its location is also known as a hot spot for some of the biggest celebrity guests, including Chris Brown, Travis Kelce and IShowSpeed.