Last October, the German sports brand Adidas ended the collaboration with Kanye West. Reason: He expressed himself anti-Semitic. As a result, sales of Yeezys – Kanye’s designer shoes from Adidas – were immediately stopped.
The company now faces a loss of more than $770 million if they don’t sell the shoes.
Various options
There has been long speculation about what to do with the shoes. There were many ideas. Some investors suggested burning them all. But according to the company, that wouldn’t be a good idea.
Adidas could also produce and sell the Yeezy sneakers without Kanye West. The company owns all patents and copyrights. But continuing with the brand would be unfair, according to Adidas.
Another suggestion: Adidas could just give away the expensive designer shoes. But that would likely lead to resale on the black market.
Or: The company can drop the branding, give up the name “Yeezy” and continue to sell the shoe. But analysis has warned, “The shoes will always be synonymous with Kanye West and that would likely result in subdued consumer demand,” said GlobalData apparel analyst Darcey Jupp.
Donations to organizations
After much bickering back and forth, Adidas has made a decision. This was announced by CEO Bjørn Gulden at the annual shareholders’ meeting on 11 May Sell parts of the Yeezy stocks and then donate the money. To organizations helping the company that are hurt by Kanye’s comments.
But there’s a catch: Kanye West profits from selling Yeezy products.
Details of the plan are not yet known. You probably want to figure out how to give Kanye as little profit as possible first.
Brutal losses
Since Kanye and Adidas ended their partnership, the company has suffered brutal losses. The company lost hundreds of millions last year. $655 million in the last three months of 2022 alone. $441 million at the beginning of 2023.
West also had to take a step back. He is said to have lost $1.5 billion due to the company’s divorce and lost his billionaire status in the process.
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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.
