First modification:
German sportswear brand Adidas has been trying for months to make a decision that could cost it millions of dollars and has to do with its divorce from American rapper Kanye West, known as ‘Ye’.
Almost seven months after the end of the alliance with the singer Kanye Westsingled out for anti-Semitism and for posting offensive comments against Jews on his social networks, the boxes of his popular ‘Yeezy’ line of shoes are still piling up in warehouses and there seems to be no solution in sight.
Adidas chief executive Bjørn Gulden said the company is “closer and closer to a decision,” though he noted that “the options are narrowing.”
The company is considering some alternatives, but it is not easy: selling the shoes would mean having to pay royalties to the artist, re-stitching them to remove the brand identification is considered dishonest, and giving them away to people in need could lead to resale due to their high price. market value, according to the executive.
an expensive decision
In previous years, the so-called ‘YE’ line of Adidas had become the star in sales of sports shoes and its managers keep secret the volume of boxes that are in their inventory.
Losing the ‘Yeezy’ brand “harms us,” Gulden said in a statement. The break caused a drop in sales of 400 million euros in the first quarter compared to the previous year and would imply an impact of 500 million euros during all this year if Adidas decides not to sell the remaining inventories.
The mess over this product, which involves the million-dollar contract broken early with the rapper, is already in court because investors recently sued the company for failing to foresee the reputational damage caused by ‘Ye’s anti-Jewish comments. ‘ and failing to take steps to curb the economic cost.
In fact, the break with the rapper meant Adidas closed the year 2022 with a net loss of 513 million euros.
With “so many interested parties” involved in the discussions, a decision has not yet been reached, the company’s CEO explained, while pointing out that destroying them is the least desirable option.
With AP and EFE
