7 Months After the Split with Kanye West, Where Is Adidas Keeping the $1,300,000,000 Yeezy Sneakers?
Adidas is still reeling from the after-effects of their split with Kanye West. Seven months ago, the company made the executive decision to end its relationship with the rapper, all after enjoying a mutually profitable partnership for nearly a decade. While the decision did not come as a surprise, the aftermath of it all was the loss of millions of dollars.
The ‘Donda’ rapper became a billionaire while the company also made an estimated 15% of its profits from the Yeezy brand. The separation caused Ye to lose his billionaire status while Adidas is still left in limbo about what to do with the stock.
Here is what happened to the $1.3 billion Yeezy stock by Adidas
ADVERTISEMENT
Article continues below this ad
Yeezy has enjoyed demand for its products, with fans lining up to purchase them for years. But what happens when a company is suddenly left with billions of dollars’ worth of high-end products? No one knows it better than Adidas. They are stuck with storing unsold products in their warehouse. According to Billboard, CEO Bjorn Gulden revealed the company is closer to deciding what to do with the unsold stock. A loss of $441 in sales has already been faced by the company during this year’s beginning. Although they have multiple options, narrowing it down to one is no simple decision.
As per the CEO, this multi-million line has the interests of several investors as well. Apparently, they cannot just sell products now as part of it will have to go to Ye. In an act of social service, they cannot give the goods away because of the risk of resale. While burning them all is not ruled out, it will be kept as the last resort.
ADVERTISEMENT
Article continues below this ad
It was Ye’s anti-Semitic comments that gave the last blow to his relationship with the company. Something that the investors are also upset about.
Investors sue Adidas for not being decisive about Kanye West
As per reports, investors have sued the company in the U.S. for failing to act on Ye’s behavior early on. They feel that the German-based company turned a blind eye to him until things got too rough. Adidas has denied any such claims. After facing a sales loss of $600 million last year, they now look forward to an estimated loss of $700 million. It will be seen how the company picks up from these losses to keep up with the competition now.
ADVERTISEMENT
Article continues below this ad
What do you think Adidas should do with the unsold Yeezy products? Share your thoughts in the comments.
ADVERTISEMENT
More from Netflix Junkie on Music News
ADVERTISEMENT