Adidas to sell Yeezy shoes and donate proceeds
The company plans to sell some of the sneakers and other merchandise it produced in collaboration with rapper Kanye West and contribute a portion of the profits to charitable causes.
Following the celebrity’s derogatory remarks about Jewish people, the German sportswear company terminated its association with him last year. As a result, the firm has experienced a significant drop in revenue, leading to its first annual loss in over thirty years.
Although the partnership has ended, sneakers from the collection are still highly sought-after in the secondary market.
According to CEO Bjoern Gulden, Adidas is currently determining the logistics of the sales.
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According to Mr. Gulden, Adidas has an inventory of Yeezy shoes worth approximately 1.2 billion euros (£1 billion; $1.3 billion) in storage. To prevent these products from reaching the market indirectly, the company has chosen to sell some of the merchandise rather than donate it.
In a recent announcement, Adidas disclosed that if it does not “repurpose” its remaining unsold Yeezy stock, it will negatively impact its operating profit by €500 million this year.
Investors are suing the company, claiming that Adidas was aware of Kanye West’s problematic behavior for years before the partnership ended. The investors argue that Adidas did not take adequate steps to limit financial losses or minimize their risk.
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