According to reports, Kanye West and Adidas have reached a new agreement to sell the remaining $500 million in Yeezy sneaker inventory.
Back in October, Ye received harsh criticism for a series of anti-Semitic comments, which resulted in Balenciaga dropping the controversial artist, the CAA talent agency dropping him, and G.O.O.D. Music no longer being signed to Def Jam. Adidas had to deal with its partnership as retailers began withdrawing YEEZY products, eventually terminating its partnership with Ye, which boosted its business.
Reports of the new agreement between Adidas and Ye come after news that Adidas could lose up to $1.3 billion dollars in unsold YEEZY sneakers. Though the word has surfaced that Adidas planned to spend millions to continue using YEEZY designs with any branding after parting ways.
According to multiple reports, the new contract would allow Adidas to release and promote existing product developed under their previous agreement with West. It makes no provision for the collection to be continued.
According to reports, the remaining Yeezy x Adidas products are worth around $500 million.
The agreement would allow the athletic company to offset the projected loss it announced earlier this month.
“The numbers speak for themselves. We are currently not performing the way we should,” said Adidas CEO Bjørn Gulden about the blow to Adidas’ profit margins. “2023 will be a year of transition to set the base to again be a growing and profitable company. We will put full focus on the consumer, our athletes, our retail partners and our Adidas employees. Together we will work on creating brand heat, improve our product engine, better serve our distribution and assure that Adidas is a great and fun place to work. adidas has all the ingredients to be successful: A great brand, great people, fantastic partners and a global infrastructure second to none. We need to put the pieces back together again, but I am convinced that over time we will make Adidas shine again. But we need some time.”
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