After trying to figure out what to do with USD $1.3 billion (AUD $1.94b) of excess stock of Yeezy sneakers, Adidas has opted to sell them.
While the leading German footwear brand cut ties with Kanye West last year due to his anti-Semitic remarks, Adidas was left scratching its head with all of the leftover Yeezy merchandise.
But, after months of contemplating what to do, CEO Bjorn Gulden said the company had finally reached a decision.
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After learning that they would lose up to $1.3 billion in revenue, the athlete apparel company has announced they would sell the once high-in-demand shoes.
"What we are trying to do now over time is to sell parts of this inventory and donate money to the organizations that are helping us and that were also hurt by Kanye's statements," he said, as per NPR.
However, Gulden didn’t specify how the distribution of Yeezys would roll out or if Ye would get a pay cut.
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Earlier this month, large investors filed a lawsuit against Adidas, claiming that the company failed to warn them about his extreme views and problematic behavior.
In the lawsuit, investors claimed that the company ‘routinely ignored’ the ‘Runaway’ rapper’s antics as early as 2018, according to CNN.
While Ye’s anti-Semitic remarks were made last year, the rapper has also made controversial statement about slavery and abortion, which they claimed senior executives overlooked.
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The Wall Street Journal reported that the proposed class action even highlighted that former CEO Kasper Rorsted and Harm Ohlmeyer, the company’s chief financial officer, made false statements about the producer’s relationship with the company.
It added that the company also failed to tell investors of Ye’s anti-Semetic remarks and that he was considering naming an album after Adolf Hitler.
According to the lawsuit, obtained by the outlet, it added: “Adidas was aware of his behavior, and failed to warn investors that it was aware of that behavior, and had considered ending the partnership as a result of it.
“Adidas failed to take meaningful precautionary measures to limit negative financial exposure if the partnership were to end as a result of West’s behavior.”
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However, a spokesperson for the company has fiercely rejected these allegations.
“We outright reject these unfounded claims and will take all necessary measures to vigorously defend ourselves against them,” Adidas said in a statement to CNN.
Topics: News, Kanye West, Fashion