In Summary
- The German sportswear giant cut ties with the celebrity, now known as Ye, last year after he made anti-Semitic comments.
- The decision has cost the firm millions in sales and has it facing its first annual loss in more than three decades.
Adidas has decided to sell some of the trainers and other products it made with rapper Kanye West and donate some of the proceeds to charity. The German sportswear giant cut ties with the celebrity, now known as Ye, last year after he made anti-Semitic comments.
The decision has cost the firm millions in sales and has it facing its first annual loss in more than three decades. Shoes from the collaboration remain wildly popular in the resale market.
Chief executive Bjoern Gulden said the company was still working out how the sales would happen.
~Bjoern Gulden
“What we are trying to do now over time is to sell some of this merchandise… burning the goods would not be a solution.”
Mr Gulden said the firm had decided to sell some of the merchandise, instead of donating it, because it did not want to see the products reach the market indirectly. A sale could help reduce some of those losses. Ye will also be entitled to some of the money, under the terms of the partnership.
Adidas Sued by Investors
The company is being sued by investors who claim Adidas knew about Kanye West’s problematic behavior years before it ended their partnership. Investors allege Adidas failed to limit financial losses and take precautionary measures to minimize their exposure.
Mr Gulden defended Adidas’ years-long collaboration with the designer and musician, saying that “as difficult as he was, he is perhaps the most creative mind in our industry”.
The company said it had concluded an internal investigation into reports that the artist had created a “toxic” environment.
