German sporting goods maker Adidas will sell part of its stock of Yeezy sneakers, produced with controversial rapper Kanye West, and donate the proceeds to nonprofits, the group’s chief announced Thursday.
Adidas broke its collaboration with the rapper in October, notably accused of anti-Semitic comments, and is seeking a solution for the thousands of shoes that have made their collaboration a success for years.
“For the last four months, we’ve been trying to find solutions for what to do with that (sneaker stock). Burning the merchandise is not the solution”, explained Bjorn Gulden during the group’s general assembly.
“After speaking with all the NGOs and many organizations that have been harmed by Kanye, they all say no, that it is not the solution” to destroy them, added the head of Adidas.
A share valued at 500 million euros
“What we’re trying to do now is sell some of that merchandise and donate money to organizations that are helping us that have also been hurt by Kanye’s statements,” he said in the announcement.
“We don’t know yet when or how we will do it, but we are working on these issues,” said Bjorn Gulden.
Logically, the rapper who now goes by the name Ye should also receive a percentage of the sale.
At the end of March, the value of the stock of Yeezy shoes remaining in the arms of the equipment manufacturer was estimated at 500 million euros, which is likely to generate sales of 1.2 billion euros.
Adidas started the year with another quarterly loss, following a dismal 2022 fiscal year, weighed down by the abrupt discontinuation of Yeezy sneakers.
The quarterly net loss of group shares of 39 million euros follows a positive balance of 482 million registered a year earlier, which shows the impact of the termination of the collaboration with Kanye West.
Source: BFM TV
