Adidas has announced that it will be selling off its remaining Yeezy stock after ending its deal with Kanye West. The company had previously warned that failing to “repurpose” the unsold Yeezy products would reduce its operational earnings by 500 million euros this year.
Adidas and Kanye West have reportedly reached a new agreement to sell all remaining leftover Yeezy stock following the official termination of their partnership. This comes after months of speculation surrounding the future of the brand, which was created in collaboration between Adidas and West in 2013.
The breakup between Adidas and West has been a major blow for both parties, as well as for fans of the popular line of shoes. While Adidas is now left with $1.3 billion worth of unsold Yeezy shoes, West has lost out on an estimated $540 million in potential profits from his partnership with the sportswear giant.
Unsold Yeezys Pose Challenge for Adidas
The company is now facing a major challenge in how to dispose of its 1.2 billion euros ($1.3 billion) worth of unsold Yeezy shoes. According to Kasper Rorsted, chief executive officer at Adidas, “We are currently working on solutions to repurpose or sell these products”.
Adidas has also indicated that it may donate some proceeds from any sales generated by the leftover stock to charity organizations or causes related to sustainability initiatives. It remains unclear how much money will be raised through such donations, but it could potentially help offset some of the losses incurred by Adidas due to their split with West.
Impact on Investors and Consumers
The breakup between Adidas and West has had a significant impact on investors and consumers alike. For investors, there is now uncertainty surrounding the future profitability of the brand, while consumers are left without access to one of their favorite lines of shoes. However, it appears that both parties are committed to finding a solution that will benefit everyone involved in this situation.