After Kanye West made several anti-Semitic remarks last year, Adidas ended the collaboration with the musician. The pre-production Yeezys – Kanye’s designer shoes from Adidas – are now sitting unsold in warehouses around the world – and Adidas is sitting on a fortune it can’t get rid of.
Kanye West has been attracting attention with borderline statements for years. With the words “I like Hitler” and “I love Nazis”, the musician made the camel’s back last year and Adidas immediately stopped working with him. Together with the rapper, the sports brand produced the famous “Yeezy” sneakers, which sold for hundreds of dollars per pair. A once profitable company is now in the red.
Adidas is in red
Adidas posted a loss of nearly 24 million francs in the first quarter due to the separation from West. Especially annoying when you consider that the Yeezy shoes are worth pure gold, which Adidas could have sold dearly a year ago. As CEO Bjørn Gulden confirmed, contractual obligations also required Yeezys worth about $100 million to be produced in the first quarter of 2023.
Although the company has not disclosed how many West sneakers are collecting dust in warehouses, the total value of the unsold shoes is said to be almost half a billion francs.
No final solution yet
Adidas could sell the shoes to get out of the red, but Kanye West would also make money from the sneakers despite the divorce. As reported by welt.de, he should receive 5% of the proceeds. For example, a German company would pay several million francs to a public anti-Semite.
Another solution would be to destroy the goods and shred the 500,000,000 francs along with the shoes. An idea that cannot be reconciled with the sustainability goals of the brand. If the goods are donated, this can lead to the shoes being sold for a lot of money by private individuals.
Adidas has not yet found a definitive solution to the sneaker problem. However, the company is planning a general meeting next Thursday, where exactly that will be discussed.
Soource :Watson
I am Amelia James, a passionate journalist with a deep-rooted interest in current affairs. I have more than five years of experience in the media industry, working both as an author and editor for 24 Instant News. My main focus lies in international news, particularly regional conflicts and political issues around the world.
