Adidas has never been the same after splitting ways with Yeezy. The Kanye West Impact left the sportswear giant quite resulting in colossal damage to both parties. However, something needed to be done. The leftover Yeezy shoes had badly affected Adidas’ global credit ratings. Thus it seems like the Donda Rapper and his once the longtime partner are narrowing down on a solution.
Adidas is staring at a loss of $1.3 billion if it does not manage to liquidate its Yeezy stock following its split up with Y… https://t.co/nUlRqO6rF7
— Merca2.0 (@Merca20) February 13, 2023
Everyone is aware of the downfall of YEEZY sales after it parted ways with its giant business partners. Although the companies themselves fell into a quagmire of debts and stagnant market valuations, West’s own net worth stooped down to a mere $400 million from his once $2.5 billion total assets. Apart from all his cut-offs Adidas took the greatest blow witnessing a cut it 50% in sales.
According to HiphopDX, sources have it the German multinational has agreed upon a new deal with the rapper to sell its Yeezy inventory. The stocks from Ye’s industry which were left in ruins following the official termination of the partnership resulted in heavy losses. To incur the same, Adidas has decided to sell $500 million USD worth of the remaining Yeezy sneakers.
ALSO READ: A+ Adidas Falls to A- As the Kanye West Effect Drops Its Rating
Details about the same have not been revealed so far. However, reports claim that the deal will give away select non-branded YEEZY sneakers with no new designs.
How did his business cut-off affect Kanye West?
Back in the month of October of 2022, Kanye West faced a huge downfall with all its business partnerships going down the line. With some of its biggest allies cutting ties with his company, his widespread fortune was left in the ruins. Balenciaga parted ways with the controversial artist, the CAA talent agency dropped him, and G.O.O.D. Music is no longer being signed to Def Jam and GAP left him in its most crucial times.
Adidas has its debt rating slashed by S&P as termination of Kanye West partnership batters earnings https://t.co/fstOXV7ari
— Insider Business (@BusinessInsider) February 22, 2023
To top it all, Adidas, which constituted the most significant chunk of Ye’s fortune also parted ways with the rapper after his controversial comments on Semitism and Nazism. All the back-to-back business blows resulted in the overall downgrade of the singer, with his billionaire title reduced to a mere millionaire in a blink of an eye.
What is your take on the new deal between Ye and the German multinational?