After Adidas parted ways with Kanye West last fall due to his antisemitic tirade, the sportswear brand predicted that they would suffer their first annual loss ever in 2023. Additionally, they spent months trying to find a solution for the $1.3 billion worth of Yeezy inventory they had left in stock.
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Now, though, about half a year since their fallout with West, Adidas has devised a plan. According to Business Insider, during Adidas’ yearly shareholder meeting on Thursday (May 11), CEO Bjørn Gulden announced that the company will begin selling some of the Yeezy stock soon, donating proceeds to charity.
“What we are trying to do now over time is sell parts of this inventory and donate money to the organizations that are helping us and that were also hurt by Kanye’s statements,” Bjørn said Thursday in German which was translated by Business Insider.
However, while Adidas will be giving its remaining Yeezy profits to charity, it will also be rewarding West with 15% commissions, which was previously agreed upon according to Reuters.
It’s currently unclear which organizations Adidas plans to involve in their charitable donations, as well as which Yeezy products they plan to sell. But, Adidas branded Yeezy sneakers and clothes have been in high demand since West left the company, so it will be interesting to see how the brand goes about distributing the product.
Thursday’s news comes just over a week after Adidas shareholders filed a class action lawsuit against the German company. The suit claimed Adidas did not issue proper warning to shareholders about West’s problematic behavior, leaving them ill-equipped for West and Yeezy’s departure. Adidas refuted these assertions.
“We outright reject these unfounded claims,” the company said in a statement. “(We) will take all necessary measures to vigorously defend ourselves against them.”
In other news, West recently made changes to his election team in order to revamp his 2024 U.S. presidential campaign. While he has not made any public statements regarding the matter, he has appointed British right-wing political commentator Milo Yiannopoulos to be his Director of Political Operations.
Later this year, BBC plans to air the documentary We Need to Talk About Kanye, which provides exclusive insight into West’s recent presidential campaign efforts.
Photo by Rachpoot/Bauer-Griffin/GC Images
