German sportswear giant, Adidas, still has a large stock of Kanye West’s “Yeezy” merchandise despite severing ties with the controversial rapper and fashion designer. Reports also state that the company has been uncertain about what to do with the products – though it recently revealed what it was going to do with some of them.
On Thursday, Adidas CEO, Bjorn Guden, announced the company will sell a portion of the Yeezy merchandise it has in stock and donate the proceeds to charity, VOA reported. Guden made the announcement during an annual general meeting, telling shareholders that “burning the goods is not the solution.”
“What we will try to do over time is to sell part of these goods and to donate the money to organizations that help us and which also have been hurt by Kanye’s statements,” Guden said. “When we will do that and how we will do that is not clear but we’re working on it.”
In 2022, Adidas cut ties with Kanye, now known as Ye, for making a series of antisemitic comments. Prior to parting ways with the rapper and fashion designer, the Adidas Yeezy line was one of the most successful fashion collaborations as the company raked in billions of dollars in sales from the partnership.
The company announced earlier this week that it could likely lose $1.3 billion if it does not sell the Yeezy merchandise that it has in stock. The BBC also reported that Adidas’ sales in North America had decreased by 20% due to cutting ties with Kanye.
As previously reported by Face2Face Africa, Guden admitted that cutting ties with Kanye West was “hurting” the company. After ending their collaboration, both Adidas and Kanye recorded financial losses, with the former losing $540 million in its final 2022 quarter due to Kanye’s unsold Yeezy products. Kanye, on the other hand, lost his billionaire status as his net worth dropped to $400 million from $1.3 billion.
His deal with Adidas accounted for $1.5 billion of his net worth. “With that gone, Ye is no longer a billionaire,” Forbes wrote when the deal was canceled. “It caps a stunning, self-induced downfall for one of the brashest and most volatile personalities to have graced Forbes’ pages.”